Culture Minister proposes digital levy against tech giants' dominance
Minister of State for Culture, Wolfram Weimer, has announced an initiative aimed at reining in the power of large internet platforms through a combination of tax, antitrust, and regulatory measures. Central to this initiative is the proposal of a platform solidarity tax, intended as a special fiscal levy on digital platforms that use media content, with the goal of generating billions to support and strengthen the traditional media ecosystem in Germany. Weimer plans to present these proposals publicly in the fall of 2025.
The proposed tax measure faces definitional and legal challenges, as the term "online platforms" lacks clear legal definition within German and European tax law. The coalition government is exploring a structure that combines both fiscal and non-fiscal elements for this digital company levy, but detailed contours remain unclear. The plan is politically sensitive internationally, notably opposed by the USA, which views digital taxes as potential trade barriers.
In addition to the platform tax, Weimer is coordinating interdepartmental efforts to implement broader regulatory measures addressing structural imbalances. This includes legislative steps to require digital platforms and streaming services (such as Netflix) to invest in German and European audiovisual productions—a measure akin to an investment obligation or "Lex Netflix." The initiative involves increasing film funding significantly (to €250 million annually) and establishing incentives plus obligations for media service providers to invest in local content production.
Criticism from the internet industry, which argues existing contributions by streaming services and digital companies are already substantial, has been met with emphasis on cultural and economic benefits by Weimer. The approach integrates tax, investment, and regulatory components to create a more balanced and competitive media and digital landscape in Germany.
Education Minister, Anja Karliczek, has also initiated a discussion on excessive social media use by those under 16, with Weimer urging a more comprehensive strategy in the debate on a social media minimum age. Weimer has won clear support in the Bundestag for a digital tax, with the mandate for this tax coming from the coalition agreement. However, no new information about the platform solidarity tax or the regulatory measures for the digital tax was provided in this announcement.
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- The proposed platform solidarity tax, a fiscal levy on digital platforms that use media content, is part of the comprehensive approach to reining in the power of large internet platforms, which also includes regulation and legislation, as outlined in Minister Weimer's policy-and-legislation initiative.
- The proposed investment obligation or "Lex Netflix," requiring digital platforms and streaming services to invest in German and European audiovisual productions, is a part of the broader regulatory measures addressing structural imbalances in media and digital politics, presented by Minister Weimer as a strategy to support and strengthen the traditional media ecosystem.
