Germany is considering the introduction of a 10 percent tax on digital advertising revenues earned by major internet companies such as Alphabet and Meta, in a bid to tackle what officials describe as “tax injustice”. The move, however, risks reigniting trade tensions with the United States.
Philip Amthor, parliamentary state secretary in the Digital Ministry, told Die Welt that the current system unfairly burdens German firms with strict taxation, while large digital corporations exploit loopholes to avoid paying their fair share.
“Big tech firms are particularly adept at tax avoidance,” Amthor said. “Meanwhile, German companies are taxed relentlessly. We need a fairer system to address this imbalance.”
The proposed tax would apply to platforms such as Instagram and Facebook, and is part of a broader push to ensure global tech firms contribute more meaningfully to the German economy, especially given the scale of profits generated locally.
Wolfram Weimer, Germany’s media and culture commissioner, said the government is already working on a draft law. He added that leading tech companies will be invited to discussions at the chancellery before any legislation is finalised.
Weimer, a former newspaper editor, told Stern magazine that he had summoned executives from Google and other digital heavyweights for talks, aiming to explore options including potential voluntary agreements.
“We’re simultaneously drafting a concrete legislative proposal,” he said, suggesting that Germany could follow Austria’s example, where a five percent digital tax is already in place. “Here, we believe a 10 percent rate is moderate and justified.”
Weimer argued that dominant digital firms had created “monopoly-like structures” that stifle competition and threaten media pluralism. He also criticised the tech giants for generating vast revenues in Germany while contributing little in terms of taxes or local investment.
“These corporations are reaping billions in profits from German media and cultural resources, but offer very little back,” Weimer said. “They pay minimal taxes, invest insufficiently, and do not adequately support the society from which they benefit.”
He concluded with a warning: “Germany is becoming alarmingly dependent on American technological infrastructure. This cannot continue unchallenged.”