Consumer Advocates Call for Digital Tax on US Tech Giants
Consumer protection organization, Verbraucherzentrale Bundesverband (VZBV), has expressed support for the introduction of a digital tax on US internet companies like Google and Meta. According to Michaela Schröder, the organization’s head of consumer policy, the state has a legitimate interest in sharing the profits of the large digital platforms.
Schröder pointed out that there are various possibilities for a tax base, emphasizing that, from a consumer perspective, the priority should be to regulate the business model of personalized advertising in a way that reduces the harm to users, society and democracy.
The expert explained that the need for action stems from the business model of the companies, which involves aggregating user profile data to serve targeted advertisements. “This business model has been proven to pose a threat to informational self-determination, respectful coexistence online and democracy” Schröder said. “At the same time, the large internet companies form oligopolistic structures in the digital advertising market, allowing them to reap large profits and hinder competition.