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French government considers plan to tax internet giants to pay for infrastructure
23 Dec 2010 | 14.54 Europe/London
It is the fundamental question underlining the future of the internet. With the likes of Google making billions off the back of a network they have not invested in, should they be taxed in local countries so part of their profit can go in to improving the very broadband infrastructure they rely on, yet do not contribute to?
It is certainly a question the French Industry Minster, Eric Besson, believes the French government needs to be looking in to. At the same times as millions of Euros of public money are being put in to improving connections across urban, and more particularly, rural areas, he believes that a company, such as Google, which he claims has a 90% share of the search market, should be forced to plough back some of the money they make in to better infrastructure.
The French government was planning to make all advertising companies in France pay a 1% levy each year but the tax has been postponed until further consultation can take place. The fear was the tax would hit small companies equally as hard as giants, such as Google.
Besson is in the process of setting up a working group including ISPs, telecos and internet companies to decide what the future should be and whether a new law is required to tax companies making a fortune out of content and marketing services on the web to ease the burden on the public purse for rolling out fibre.
It is certainly a question the French Industry Minster, Eric Besson, believes the French government needs to be looking in to. At the same times as millions of Euros of public money are being put in to improving connections across urban, and more particularly, rural areas, he believes that a company, such as Google, which he claims has a 90% share of the search market, should be forced to plough back some of the money they make in to better infrastructure.
The French government was planning to make all advertising companies in France pay a 1% levy each year but the tax has been postponed until further consultation can take place. The fear was the tax would hit small companies equally as hard as giants, such as Google.
Besson is in the process of setting up a working group including ISPs, telecos and internet companies to decide what the future should be and whether a new law is required to tax companies making a fortune out of content and marketing services on the web to ease the burden on the public purse for rolling out fibre.