New German Government Proposes Digital Levy for Major Platforms

The German government is considering the introduction of a digital levy aimed at large internet corporations such as Google and Meta, as announced by the Minister of State for Culture, Wolfram Weimer. In a recent interview, Weimer indicated that a draft legislation is currently being prepared to impose a tax on these major players in the digital economy, which generate billions in revenue.

Weimer described the proposed levy as a 'modest and legitimate' rate of ten percent, which he believes will primarily target operators of platforms that utilize media content. This initiative appears to be inspired by Austria's model, where since 2020, significant online platforms have been required to contribute five percent of their advertising revenue.

Referred to as a 'platform solidarity tax', Weimer's proposal aims to ensure that large corporations contribute a fair share to society. He emphasized that the levy should not result in higher costs for individual consumers. Citing experiences from Austria, he noted that the introduction of a similar tax did not lead to significant price increases for users while allowing corporations to contribute towards societal needs.

According to the coalition agreement between the Union and SPD parties, the introduction of such a levy on online platforms is under consideration to enhance media diversity and protect freedom of expression.

Should this digital tax be enacted, it could potentially create tensions with the administration of U.S. President Donald Trump, given that many of the largest digital companies are based in the United States. Weimer outlined the next steps in the process, which involve drafting a legislative proposal that aligns with the coalition agreement and consulting with stakeholders, particularly platform operators, to explore alternative solutions.

Weimer's proactive approach seeks to balance the interests of the digital economy with the need for equitable tax contributions, thereby fostering a more competitive environment in the media landscape.