France considering 'Google' tax

8 Jan 2010

A report presented to the French government advocates taxing search engine companies such as Google every time a French user clicks on a web ad. The Zelnik Report recommends taxing online advertising companies and ISPs in a bid to raise between USD50 million and USD72 million per annum to shore up old media companies such as newspapers and traditional music firms, all of which have been hit by the digital revolution. A total of 22 proposals are contained in the report which has been fashioned by Patrick Zelnik, a former executive at Polydor and Virgin France; the president of Sotheby’s France Guillaume Cerutti; and Jacques Toubon, a former French minister. There is no given timetable for the government to implement the proposals, which apparently have the backing of President Sarkozy.