Germany Considers 10% Digital Tax On Tech Giants Alphabet, Meta: Report
Germany is considering a 10% tax on major tech companies like Alphabet and Meta, as revealed by Minister Wolfram Weimer. This proposal, which could heighten trade tensions with the U.S., comes ahead of Chancellor Friedrich Merz's visit to Washington. Weimer criticized these companies for minimal tax contributions and monopolistic practices. The move aligns with similar taxes imposed by other countries and follows warnings from the EU about potential retaliatory measures against U.S. tech firms. Alphabet's shares fell 0.24%, while Meta's rose 0.23%.
In a move that could escalate trade tensions with the U.S., Germany is reportedly contemplating imposing a 10% tax on major online platforms, including Alphabet Inc. GOOGL GOOG and Meta Platforms Inc. META.
What Happened: Wolfram Weimer, the new German Minister of State for Culture, disclosed this proposal in an interview with Stern magazine. This revelation comes before Chancellor Friedrich Merz‘s anticipated visit to Washington, although no official confirmation has been provided yet, reported Reuters.
President Donald Trump has previously expressed his disapproval of foreign governments taxing American companies, pledging not to let them “appropriate America’s tax base for their own benefit.”
Weimer accused big online platforms like Alphabet Inc. and Meta Platforms Inc. of “cunning tax evasion.” He suggested that these companies, which generate billions in profits in Germany, contribute minimally to the country’s tax base and society.
Weimer also criticized the monopolistic tendencies of these digital platforms, arguing that they pose a threat to freedom of expression.
Why It Matters: This proposal comes amid growing international scrutiny of tech giants. The Trump administration has been critical of Europe’s digital regulations, asserting that they pose a risk to free speech and American commercial interests.
Furthermore, in April, European Commission President Ursula von der Leyen warned that the EU is preparing retaliatory measures that could include levies on digital advertising revenues from U.S. tech companies like Meta and Alphabet Inc. This was followed by Meta CEO Mark Zuckerberg urging President Trump to respond aggressively to these threats.
If the German government proceeds with this tax, it would join Britain, Italy, France, Spain, Turkey, India, Austria, and Canada, which have imposed similar taxes on digital service providers.
The shares of Alphabet fell 0.24% to close at $172.96 on Thursday, meanwhile Meta rose 0.23% to $645.05.
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