Google and Co.: Government plans platform tax for internet giants

Union and SPD have agreed in the coalition agreement to check a submission for large online platforms. Anyone who believes will be blessed. Or?
No, we are serious. The large American digital platforms such as Alphabet/ Google, Meta and Co. are on my agenda. We have a complex problem there. On the one hand, monopoly -like structures have developed that not only restrict competition, but also concentrate too much media power. This endangers the variety of media. On the other hand, the corporations in Germany do billions of business with very high margins and benefited enormously from the media and cultural performance and the infrastructure of our country – but they hardly pay any taxes, invest too little and give society too little. In short: Germany should introduce a platform soli.

The arguments have been around for years, nothing has happened – also because of the unclear legal basis for such a tax.
Something has to change now. Germany now makes itself in a mean way dependent on the technological infrastructure of the Americans. I therefore started an initiative to address this problem politically. We have developed a concept that invites Google and Co. to contribute more and to participate. There is great agreement on the party borders that politics should finally act here.

Does “act” mean that a direct taxation will finally be made? So far the Platforms The taxation by simply moving your profits.
Yes, the large platforms do skillful tax avoidance. This is unsolidar and has been leading to serious conflicts with the national and European authorities for years. The order for the introduction of a tax for platforms that use media content is very clear in the coalition agreement. Since this section is formulated for my area of ​​responsibility, I take care of it. We mean not only the journalistic products, but also the cultural.

Such a levy – in the middle of the customs dispute – could cause violent disputes. How should it be designed?
There are different approaches. First of all, I invited the Google leadership and important industry representatives for talks to the Chancellery in order to check the alternatives, possibly also voluntary self-commitments. At the same time, we specifically prepare a legal template. This could be based on the Austrian model. Austria has introduced simple and effective taxation of online advertising services of five percent for very large platform operators. In my view, Austrian experiences with a platform soli are convincing.

For example, we take Google Ads: How high should the tax rate become?
It’s not just about Google Ads. It is generally about platform operators with billions in sales. We consider a tax rate of ten percent moderate and legitimate. The experiences from Austria show that this form of delivery has not brought a relevant price change for end customers. However, it has caused the corporations to finally make a small tax contribution for society, i.e. their huge margin decreases somewhat. At the same time, this opens the competition.

Didn’t this government actually lower taxes?
I am guided by Ludwig Erhard. The social market economy primarily relies on competition. However, this is severely restricted in these key fields of digital media management by monopoly -like structures. This not only carries economic risks, but also political and cultural for the freedom of discourse. When Google is renamed the Gulf of Mexico under pressure from Donald Trump in Gulf of America and, due to its enormous power in global communication, simply decreases this, then we can see which problems lurk in the current structures.

You seriously believe that Ludwig Erhard would have acted similarly?
Ludwig Erhard has highly combined in cartels and monopolies to act politically against it. He was the father of the law against restrictions on competition. His credo is: where economic power is abused in competition, market economists should intervene as combative as against the state’s assault. Relieve the economy in perspective, de -bureaucrating and strengthen competition – also in the active fight against cartels and monopolies.

Fight against cartels and monopolies: that sounds almost left.
I think these categories are outdated in many political questions. The new federal government operates an offensive policy in the middle. In cultural and media issues, I enter the primacy of freedom. And in the sense of a variety of media as much as possible, it is important to defend it towards powerful digital groups.

How exactly is it going?
We work out a law on how the coalition agreement demands this. This is now discussed with the stakeholders, but above all checked in parliament. At the same time, I am looking for a conversation with the platform operators at top level to probe alternative solutions. My impression after my preliminary talks in the coalition is that there could be great unity in the assessment between the Union and the Social Democrats, but also with the Greens. We should finally challenge Google and Co.