Germany is contemplating the introduction of a significant 10% tax on the revenues of large digital platforms such as Google and Meta, a move that could reignite trade frictions with the United States.
The proposal, unveiled by Germany’s new Culture Minister Wolfram Weimer, aims to ensure that global tech behemoths contribute more substantially to the German economy, from which they derive billions in revenue.
Minister Weimer, in an interview with Stern magazine, stated that his department is actively drafting legislation for the levy. He characterized a 10% tax rate as “moderate and legitimate,” arguing that these digital corporations generate substantial profits in Germany and benefit immensely from the nation’s media, cultural output, and infrastructure, yet currently pay minimal taxes and invest insufficiently back into the community. Weimer accused the platforms of engaging in “clever tax avoidance.”
The German government is also reportedly exploring alternative solutions, including discussions with the platform operators about potential voluntary contributions. The idea of a digital services tax was included in the coalition agreement of Chancellor Friedrich Merz’s government, which pledged to evaluate such a levy and use any funds raised to bolster Germany’s media sector.
This initiative would see Germany join a growing list of countries, including France, Spain, the UK, Austria, and Canada, that have already implemented similar digital taxes. Austria’s model, which imposes a 5% tax on online advertising services, was cited by Weimer, who suggested Germany could aim for a higher rate.
This move comes at a sensitive time, with Chancellor Merz expected to visit Washington for discussions with U.S. President Donald Trump. The Trump administration has previously voiced strong opposition to such digital taxes, viewing them as discriminatory against American companies and has threatened retaliatory tariffs.
President Trump has stated his disapproval of foreign governments “appropriating America’s tax base for their own gain.”
Despite potential U.S. pushback, Minister Weimer appeared undeterred, noting that the legal groundwork for the tax is already underway. German media organizations have largely welcomed the proposal, hopeful that it will hold internet giants accountable and potentially provide financial support to local media outlets struggling under the dominance of global tech platforms. The final form of the legislation and its reception internationally, particularly by the U.S., will be closely watched.
