TLDR;
- Germany is drafting a 10% tax on tech giants like Alphabet (Google) and Meta (Facebook, Instagram), focused on their German ad revenues.
- The tax could strain U.S.-Germany relations, especially ahead of Chancellor Merz’s visit to Washington.
- Cultural Minister Wolfram Weimer accused big platforms of tax evasion and exploiting Germany’s media sector.
- Tech companies may face a choice between paying the tax or making voluntary financial contributions.
Germany is considering introducing a 10% digital tax on major global tech platforms such as Alphabet Inc. and Meta Platforms Inc., a move that signals both economic recalibration and growing frustration with the tax practices of Big Tech.
The announcement was made on Thursday by Germany’s new Federal Commissioner for Culture and Media, Wolfram Weimer, during an interview with Stern magazine. He revealed that his ministry is currently preparing a draft law targeting the German advertising revenues of large internet platforms. The initiative, he said, is not just about economics, it’s about fairness, sovereignty, and protecting Germany’s media ecosystem.
“We are serious about this,” said Weimer. “These companies earn billions using content and infrastructure funded by others while contributing next to nothing to our society.”
Ad Revenue in the Crosshairs
The proposed tax would primarily focus on advertising revenue generated within Germany. Inspired by Austria’s 5% levy on digital ads, the German plan could double that rate, establishing a 10% charge as a “moderate and legitimate” rate, according to Weimer.
The funds raised are expected to support Germany’s cultural and editorial sectors, which have seen their business models upended by the rise of algorithm-driven global platforms. The Federal Association of Digital Publishers and Newspaper Publishers has voiced support for the initiative, viewing it as a necessary correction to an imbalanced digital economy.
Weimer emphasized that voluntary contributions from the tech companies are still being explored as an alternative.
“We have invited executives from Google and industry leaders to the table to discuss fair solutions,” he stated, signaling that Germany might prefer dialogue before confrontation.
Transatlantic Tensions Loom
The proposed levy comes at a politically sensitive time. Chancellor Friedrich Merz is expected to visit Washington soon for talks with U.S. President Donald Trump. While the trip hasn’t been officially announced, the timing adds weight to Weimer’s proposal.
President Trump has a history of pushing back against similar European digital tax initiatives. He has accused EU governments of unfairly targeting American firms and warned against any move that, in his words, seeks to “appropriate America’s tax base for their own benefit.”
Observers warn that this tax could further strain U.S.-EU trade relations, already tested by tariffs and differing regulatory visions for Big Tech. The Trump administration may view Germany’s move as part of a broader European strategy to rein in American tech dominance.
Germany Joins Growing Global Movement
Germany would not be acting alone. Several other nations, including France, Spain, Italy, Austria, Canada, and India, have already implemented or are considering similar digital service taxes. The European Commission has also indicated its willingness to introduce bloc-wide measures if global negotiations on taxing tech firms stall.
Still, the German government appears determined to proceed, with Weimer insisting that the era of unchecked profits and minimal tax obligations for digital giants must end.
“The platforms can no longer hide behind legal loopholes while profiting from content, users, and infrastructure they neither fund nor respect,” Weimer said. “Germany has both the right and the responsibility to act.”
