Journalists follow a news conference during the opening of the new Alphabet's Google Berlin office in Berlin, Germany, January 22, 2019. REUTERS/Hannibal Hanschke
Google, Amazon, Facebook and Apple – or “GAFA”, as they’re known in France – are easy to group together in the European imagination. They’re big, they’re American and they’ve tended to pay relatively little tax, thanks to legal loopholes and a business model that exists largely in the virtual world.
Frustrated governments have tried to use the courts and the hammer of EU regulators to squeeze more money out of the tech giants, but it hasn’t always worked. So, rather than wait for international rules to catch up, France and a few others are embracing the tech sector equivalent of a financial transactions tax (a generic name for levies on transactions such as sales and purchases). It’s a messy idea, but politically it makes the right noises.
Limited time offer:
Just RM5 per month.
