Digital tax push hit: Culture Minister Weimer meets tech giant resistance

Minister of State for Culture Wolfram Weimer (CDU) has put himself between two stools with his controversial proposal to introduce a ten percent digital tax for large internet companies such as Amazon, Apple, Google and Meta. The proposal has few supporters, particularly in the CDU and CSU government camp. Weimer's opponent, for example, is Federal Minister of Economics Katherina Reiche (CDU). In view of the ongoing tariff negotiations between the EU and the Trump administration in the USA, she believes that the debate is currently not expedient.

"We shouldn't be talking about more trade barriers, but fewer", Reiche emphasized to the Redaktionsnetzwerk Deutschland. However, she is also aware that "at the same time, we need to improve the competitive conditions for German and European digital companies so that they have a chance in international competition." A spokesperson for Weimer also referred to this aspect in an interview with "Welt". It was important to carefully weigh up "all legal, technical, economic and, above all, European policy aspects". Instead of the "platform soli", alternative solutions such as a voluntary commitment by big tech companies are also conceivable.

Andreas Audretsch, deputy leader of the Green parliamentary group in the Bundestag, described Reich's hasty "rejection" of the levy as "fatal". He believes that a European digital tax is overdue at best "to limit the power of the tech oligarchs who are endangering our democracy and social market economy". The Minister of Economic Affairs is thus making herself "the patron saint of Google, Meta and Co. whose monopolies have already influenced democratic elections and prevent fair competition". At the same time, Reiche is breaking the coalition agreement, giving up important leverage in the customs dispute with Trump and harming SMEs.

SPD flirts with a "platform soli"

Martin Rabanus, spokesperson for culture and media for the SPD parliamentary group, is also in favor of a digital tax. "The proposed platform levy is the right approach", he emphasized on Wednesday at a panel hosted by collecting society Corint Media in Berlin. "Appropriate taxation of the dominant digital platforms is long overdue." However, such a step would not replace "the effective enforcement of copyrights and ancillary copyrights". Media providers must be able to rely on this regulatory framework. Former SPD party chairwoman Saskia Esken had previously praised Weimer's approach. She suggested using the revenue from such a levy to support alternative, independent and democratically controlled platforms.

The biggest proponent of a digital levy is the Bündnis Zukunft Presse, which is backed by publishers' associations. Its spokespersons Matthias Ditzen-Blanke and Philipp Welte were already pleased in spring that Weimer wanted to "hold the platform monopolies to account in the interests of digital media diversity". However, the revenue should not seep into the federal budget. They should be used directly for the counter-financing of editorial media "whose profitability is under massive attack from precisely these international technology platforms". According to the publishers, such a tax has nothing to do with trade barriers, but affects the future of media diversity and democracy.

Ralf Wintergerst, President of the IT association Bitkom, warned at the end of May: "Regardless of whether new taxes, levies, fees or customs duties are imposed on digital services, any surcharge will lead directly or indirectly to a price increase." Companies, administrations and consumers in Germany would also feel this. Wintergerst demands: "We don't need more, we need less financial burdens for digital goods and services."

(mho)