Germany Considers 10% Digital Tax on Tech Giants

Germany is weighing a proposal to introduce a 10% digital services tax on major internet companies, including Alphabet (Google’s parent company) and Meta, as part of a broader effort to enforce what officials call “tax fairness” in the digital economy.

Philipp Amthor, a spokesperson for the Federal Ministry for Digital Affairs and Transport, stated at a press briefing that the move aims to ensure that tech giants contribute their “fair share” to the German economy, particularly as their revenues surge amid expanding digital consumption.

“This is not about targeting specific companies, but about restoring balance to the tax system,” Amthor said. “Multinational platforms continue to extract enormous value from the German market while paying minimal local taxes. That’s no longer acceptable.”

The tax proposal, which could be introduced as early as Q4 2025, is expected to reignite tensions with the United States, which has previously warned against unilateral digital levies. Similar measures in France and Spain sparked trade disputes with Washington during previous U.S. administrations.

Germany’s move comes amid stalled negotiations at the OECD level to finalize a global framework for taxing digital revenues. Berlin officials argue that domestic action is necessary if multilateral solutions remain out of reach.

Industry lobbyists have already expressed concerns about regulatory uncertainty and the potential for retaliatory tariffs from the U.S., but supporters say the digital tax is a vital step toward economic sovereignty in a tech-dominated era.