Fri 8th of January, filed under PPC
Google tax attacked
Proposals for a Google tax in France have been strongly criticised by the online community.
Earlier this week, a government-commissioned report was submitted to French president Nicolas Sarkozy. The lead author of the report, Patrick Zelnik, told Liberation newspaper that he had recommended online display and search advertising should be taxed to support traditional creative industries, reports AFP.
Although Mr Zelnik described it as a "Google tax", he explained that other web giants such as Microsoft, Yahoo, AOL and Facebook would also be targeted. And he estimated that the state could raise £44.7 million this year, which would then be redistributed to musicians, authors, newspapers and so on.
Opinion split on Google tax
Mr Sarkozy did not comment directly on the report. But he did warn that competition was being distorted because multinational internet companies were making money advertising in France without paying taxes in the country.
By contrast, Christine Balague, co-president of digital media think tank Renaissance Numberique, felt that web properties were being blamed unfairly. "Neither online advertisers nor internet service providers are robbing artists," she stated. "Quite the contrary – they are taking part in...bringing consumers and artists together."
Olivier Esper, public affairs director at Google France, also questioned one of the fundamental distinctions of the plan. "There is an opportunity here to promote innovative solutions rather than extending the attitude of opposition between the internet world and the cultural world," he stated.
In related news, this week saw Google unveil its first smartphone – the Nexus One – as it attempts to make further inroads into mobile advertising. Last November, the company shelled out £450 million to acquire mobile display ad specialist AdMob.
Posted by Richard Frost
