The lower parliament house of France has authorized a small, revolutionary levy on internet giants such as Amazon, Facebook, and Google. And the French government anticipated other nations will act likewise. The bill intends to stop multinationals from circumventing levies by establishing headquarters in low-duty EU nations. At present, the firms pay almost no tax in nations where they have huge sales such as France.
The proposal anticipates a 3% duty on the French incomes of digital firms with a global income of over EUR 750 Million and French income above EUR 25 Million. The bill accepted by the National Assembly will be going to the Senate, where it is anticipated to get final authorization. The tech industry cautions it could result in higher prices for customers.
It can impact US firms comprising Uber and Airbnb in addition to those from Europe and China. Primarily, it aims those that utilize customers’ data to trade online marketing. The French Finance Ministry has projected the levy will raise around 500 million euros a year and that should amplify “rapidly.” France failed to convince EU associates to enforce a Europe-wide duty on online giants; however, it is now approaching for an international pact with the 34 nations of the Organization for Economic Cooperation and Development.
Similarly, Josh Frydenberg, Australia’s Treasurer, has cautioned tech giants like Facebook and Google to anticipate limitations on their market power. There are “genuine competition problems” in the digital advertising market to deal with the increasing supremacy of the Internet, as told by Frydenberg to Fairfax Media.
A report has been handed to the government by the Australian Competition and Consumer Commission (ACCC) on the influence of Facebook and Google’s market supremacy on traditional media firms. The report has not been disclosed to the public yet, however, remarks of Frydenberg pinpoint that the government is intending to limit the US tech giants’ power.