Google has told users it will increase advertising rates on its French and Spanish platforms by 2% from May to help eliminate the effects of the digital tax on profits.
France has collected taxes from year 2019, and Spain from this year. Under pressure from voters, US tech companies are paying more and more taxes in the countries where they operate. An e-mail viewed by the Internet company, AFP, said the increase in advertising rates was “to cover a fraction of the cost of complying with tax laws on digital services in France and Spain.”
In France, Internet companies that sell 750 million euros (over 895 million) worldwide, and 25 million in France. They have to pay a three percent tax on their French operations, especially advertising sales and market operations. Spain also levies a 3% tax on some of its businesses.
In October, Amazon raised its French tax response to a price increase of 3% on French-based marketplace sellers. Apple has followed suit by increasing commissions. Charging developers who sell apps on its platform not only in France, but also in Italy and the UK.