Relay Advisors

A Proposed New Tax Indicates France’s Attitude Toward the Internet

  • The French ministry of culture proposes a new tax on online advertising revenues targeting companies like Google, Microsoft, Yahoo! and Facebook.
  • The purpose of the tax is to raise $80 to $100 million USD per year to fund the development of French content online which the government believes is under siege.
  • Yet there seems to be no logical link between the activities of the targeted companies and the use of the taxes (how does online advertising relate to French content?)
  • Government intervention in France stands out.  An example of this is a $15 million USD investment in DailyMotion, an online video service similar to YouTube.
Takeaway: The French government is intervening in the development of the Internet far more than governments do in North America

 Source: The Economist

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