Hua Er Jie Jian Wen·2025-05-30 00:23Core Points - Germany plans to impose a 10% digital services tax on major online platforms like Google and Meta, citing tax avoidance and the need for these companies to contribute more to the local economy [1][2] - The German government is dissatisfied with the lack of taxation on substantial profits earned by tech giants in the country, which they believe creates monopolistic structures and threatens free speech [1][3] - The proposed tax could generate hundreds of millions of euros in additional revenue, but there are concerns about whether this tax burden will be passed on to advertisers and users, potentially increasing costs for digital services [5] Group 1 - The German culture minister, Wolfram Weimer, is drafting legislation for a 10% digital services tax targeting large online platforms [1] - The German government has previously agreed to such a tax in coalition talks, indicating a commitment to proceed despite potential trade tensions with the U.S. [1][4] - The tax proposal aligns Germany with other countries like the UK, France, and Italy that have implemented similar measures [2] Group 2 - There are concerns that the tax could escalate trade disputes with the U.S., as past actions have led to investigations and potential retaliatory tariffs against countries imposing digital taxes [3][4] - The tax could have broader implications for the global profitability of tech giants, with potential stock price volatility if other nations follow suit [5] - Alphabet and Meta have not yet responded to the tax proposal, but market sentiment is already adjusting to the uncertainty surrounding it [5]