EU Ministers Divided Over Proposed Tax on Big Tech Companies
Despite a two-thirds majority being against the idea, the European Commission continues to try to reach a consensus on the proposed network tax for tech companies.
Reuters reports this based on sources. A majority of EU countries have rejected a proposal from major European telecom companies to force major tech companies such as Google to pay for the rollout of 5G and broadband.
The decision was taken during a meeting with Thierry Breton, the Commissioner for the European Internal Market, in Luxembourg last Thursday. EU telecoms ministers were divided on whether or not to impose the proposed levy, sources told Reuters.
Opposition to the Tax Scheme
A majority of 18 countries rejected the proposed network tax for tech companies or demanded a study into the need and impact of such a measure. Ten countries supported the levy and three countries declared themselves neutral on the issue.
According to the sources, opponents of the tax scheme were Austria, Belgium, the Czech Republic, Denmark, Finland, Germany, Ireland, Lithuania, Malta and the Netherlands. They also said France, Greece, Hungary, Italy, Spain and Cyprus were among the countries supporting the plan.
Poland, Portugal and Romania were neutral or had not yet taken a position, the sources said.
Big Tech vs Big Telecom
The question of who will pay for the EU-wide rollout of 5G has been the subject of heated debate for several years, ever since telcos Deutsche Telekom, Orange, Telefonica and Telecom Italia proposed a levy on major platform providers such as Google, Apple, Meta, Netflix, Amazon and Microsoft. to help subsidize their 5G rollout in the Union.
The roll-out of 5G is a crucial part of Europe’s Digital Decade Plan, which calls for high-speed networks to be rolled out across the continent by 2025.
Breton, a former chief executive of France Telecom and French IT consultancy Atos, is the EC’s lead r on the Digital Services Act and Europe’s digital transition. His roots in the telecom industry may make him more receptive to the imposition of the compensation scheme, according to Reuters.
He is expected to release a report at the end of June summarizing the feedback from Big Tech, telecom providers and other “stakeholders”. That report should help decide his next steps, sources say.
EU Ministers Divided Over Proposed Tax on Big Tech Companies
The European Commission is continuing to try to reach a consensus on the proposed network tax for tech companies, despite a two-thirds majority being against the idea.
Reuters reports this based on sources. A majority of EU countries have rejected a proposal from major European telecom companies to force major tech companies such as Google to pay for the rollout of 5G and broadband.
The decision was taken during a meeting with Thierry Breton, the Commissioner for the European Internal Market, in Luxembourg last Thursday. EU telecoms ministers were divided on whether or not to impose the proposed levy, sources told Reuters.
Opposition to the Tax Scheme
A majority of 18 countries rejected the proposed network tax for tech companies or demanded a study into the need and impact of such a measure. Ten countries supported the levy and three countries declared themselves neutral on the issue.
According to the sources, opponents of the tax scheme were Austria, Belgium, the Czech Republic, Denmark, Finland, Germany, Ireland, Lithuania, Malta and the Netherlands. They also said France, Greece, Hungary, Italy, Spain and Cyprus were among the countries supporting the plan.
Poland, Portugal and Romania were neutral or had not yet taken a position, the sources said.
Big Tech vs Big Telecom
The question of who will pay for the EU-wide rollout of 5G has been the subject of heated debate for several years, ever since telcos Deutsche Telekom, Orange, Telefonica and Telecom Italia proposed a levy on major platform providers such as Google, Apple, Meta, Netflix, Amazon and Microsoft. to help subsidize their 5G rollout in the Union.
The roll-out of 5G is a crucial part of Europe’s Digital Decade Plan, which calls for high-speed networks to be rolled out across the continent by 2025.
Breton, a former chief executive of France Telecom and French IT consultancy Atos, is the EC’s lead r on the Digital Services Act and Europe’s digital transition. His roots in the telecom industry may make him more receptive to the imposition of the compensation scheme, according to Reuters.
He is expected to release a report at the end of June summarizing the feedback from Big Tech, telecom providers and other “stakeholders”. That report should help decide his next steps, sources say.
The proposed network tax for tech companies has been a major source of contention between the telecom and tech industries, with both sides arguing their case for why they should or should not have to pay for the rollout of 5G and broadband.
The telecom companies argue that they are the ones who will be investing in the infrastructure and should be compensated for it. They also argue that the tech companies are the ones who will benefit the most from the rollout of 5G, as it will enable them to offer new services and products.
On the other hand, the tech companies argue that they are already paying taxes in the countries where they operate, and that they are not the ones who will be investing in the infrastructure. They also argue that the telecom companies are the ones who will benefit the most from the rollout of 5G, as it will enable them to offer new services and products.
The European Commission is now tasked with finding a way to bridge the gap between the two sides and reach a consensus on the issue. Breton is expected to release a report at the end of June summarizing the feedback from Big Tech, telecom providers and other “stakeholders”. That report should help decide his next steps, sources say.
The outcome of the debate over the proposed network tax for tech companies could have a major impact on the European Union’s Digital Decade Plan, as well as the future of the telecom and tech industries in Europe. It remains to be seen whether the European Commission will be able to find a way to bridge the gap between the two sides and reach a consensus on the issue.