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Cryptopolitan 2025-05-29 18:00:36

Trump has accused the EU of treating US companies unfairly

Trump has accused the EU of treating US companies unfairly

Germany is preparing to introduce a 10% levy on major internet platforms such as Meta and Google, a move that could intensify already rising trade tensions with the United States. Wolfram Weimer, Germany’s federal commissioner for media and culture, told Stern magazine on Thursday that the government is working on a digital tax aimed at global internet companies. He added that officials are also considering alternatives , including asking platforms to make voluntary contributions to Germany’s tax revenues. As another option, Weimer said he has invited technology leaders to discuss voluntary payments. Under this plan, firms like Google and Meta could agree to send extra funds to Germany without a formal legal requirement. The idea of taxing internet platforms was included in the coalition treaty signed by Chancellor Friedrich Merz’s center-left government in early May. In that agreement, the coalition pledged to “evaluate” a levy on digital services and to use any funds raised to bolster Germany’s media sector. “We are serious about this,” Weimer said. A former editor of the Axel Springer-owned newspaper Die Welt, he explained that he has invited “the leadership of Google as well as key industry representatives” to explore alternatives to a tax, “including possible voluntary commitments.” Trump has accused the EU of treating US companies unfairly A German digital tax on US firms such as Google, Facebook, and Instagram could further strain transatlantic relations. US President Donald Trump has accused the European Union of treating American companies unfairly and has threatened tariffs in response. Weimer said he is unfazed by such threats, noting that the government has already begun laying the legal foundation for the tariffs. He suggested that the tariff rate could focus on the German advertising revenue of digital platforms and that it might be set at 10 percent. “We are preparing a concrete draft law,” he added. Weimer praised Austria’s model, which imposes a “simple and effective tax of five percent on online advertising services for very large platform operators.” He stressed that Germany could apply a higher rate, saying that twice the Austrian rate would still be “moderate and legitimate.” Several other EU countries, including France, already tax digital companies . Germany’s media organisations broadly welcomed the plan. The Federal Association of Digital Publishers and Newspaper Publishers told the DPA news agency that they were pleased to see internet giants held accountable for their profits. That group and the Media Association of the Free Press urged the government to direct any tax income to media outlets with editorial teams, warning that their own business models have suffered under the dominance of global tech platforms. Weimer said the levy should apply to all tech platforms that generate “billions of revenue” in Germany and that rely on editorial or cultural content produced by others. He pointed to Austria’s experience, noting that its online advertising tax did not lead to “significant price changes” but did mean corporations made a small tax contribution to society, slightly reducing their large profit margins. Weimer said the government will hold further talks with industry representatives before finalizing the proposal. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More

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