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France says Europe must chase tax owed by US tech giants

France's finance minister urged his European counterparts Sunday to do more to chase down tax due from the European operations of US tech giants such as Google, Amazon and Facebook.

France says Europe must chase tax owed by US tech giants
Photo: AFP

Bruno Le Maire's comments addressed an issue which has aroused fierce controversy: the complex tax arrangements of multinational corporations under fire for slashing European tax bills by shifting revenue across borders.

“I have just come back from the G20 meeting in Hamburg and I can tell you that the present age is not one for the weak,” Le Maire told an economic symposium in the southern French city of Aix-en-Provence.

“When you are opposite (Russian President Vladimir) Putin, opposite (US President Donald) Trump or next to (Turkish President Recep Tayyip) Erdogan, then it is time Europe got a grip and defended its interests, making  Google, Amazon and Facebook pay the taxes they owe European taxpayers,” said Le Maire to loud applause.

France had had web search behemoth Google in its sights for years and fiscal authorities last month issued a consultative judgment pending a final ruling later this month that Google should not be let off the hook for a 1.115
billion euro ($1.3 billion) claim.

In May, Google agreed to pay 306 million euros to settle a tax dispute in Italy, where it was under criminal investigation for booking 2009-2013 profits generated in the country in Ireland.

That move echoed a similar settlement with Apple two years ago.

Apart from the tax focus, Brussels last month hit Google with a record 2.4-billion-euro fine for illegally favouring its shopping service in search results, in a fresh assault on US firms that risks the wrath of President Trump.

BUSINESS

Google News to return to Spain after seven-year spat

Google announced Wednesday the reopening of its news service in Spain next year after the country amended a law that imposed fees on aggregators such as the US tech giant for using publishers’ content.

Google News to return to Spain after seven-year spat
Google argues its news site drives readers to Spanish newspaper and magazine websites and thus helps them generate advertising revenue.Photo: Kenzo TRIBOUILLARD / AFP

The service closed in Spain in December 2014 after legislation passed requiring web platforms such as Google and Facebook to pay publishers to reproduce content from other websites, including links to their articles that describe a story’s content.

But on Tuesday the Spanish government approved a European Union copyright law that allows third-party online news platforms to negotiate directly with content providers regarding fees.

This means Google no longer has to pay a fee to Spain’s entire media industry and can instead negotiate fees with individual publishers.

Writing in a company blog post on Wednesday, Google Spain country manager Fuencisla Clemares welcomed the government move and announced that as a result “Google News will soon be available once again in Spain”.

“The new copyright law allows Spanish media outlets — big and small — to make their own decisions about how their content can be discovered and how they want to make money with that content,” she added.

“Over the coming months, we will be working with publishers to reach agreements which cover their rights under the new law.”

News outlets struggling with dwindling print subscriptions have long seethed at the failure of Google particularly to pay them a cut of the millions it makes from ads displayed alongside news stories.

Google argues its news site drives readers to newspaper and magazine websites and thus helps them generate advertising revenue and find new subscribers.

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