Germany is currently considering a 10% tax on major online platforms like Alphabet’s Google and Meta’s Facebook. This potential move, announced by the country’s new Minister of State for Culture, Wolfram Weimer, is part of a broader attempt to address what he described as “unfair tax practices.” But it might also stir tensions with the Trump administration in the U.S.
The timing is interesting. There are murmurs that Chancellor Friedrich Merz could be heading to Washington soon for a meeting with President Donald Trump—though, as of now, there’s been no official word. In the past, Trump hasn’t exactly hidden his disapproval of foreign attempts to, in his words, “appropriate America’s tax base for their own benefit.”
Germany Puts Big Tech in the Hot Seat
In an interview with Stern magazine, Weimer revealed that officials are already working on a legislative draft and have started preliminary talks with the companies in question. He went as far as accusing these tech giants of “cunning tax evasion.” At the same time, he floated the idea of voluntary payments as a sort of compromise.
“These corporations generate billions here in Germany, enjoy wide profit margins, and heavily rely on our media landscape, cultural infrastructure, and public services—yet they contribute next to nothing back,” Weimer said. It’s a sharp critique, and not one that’s likely to be shrugged off.
Neither Alphabet nor Meta has issued a response to Reuters’ request for comment so far. But given the players involved, it’s almost certain this will become a transatlantic talking point.
Still a Work in Progress
Interestingly, while Germany’s ruling coalition did agree earlier this year to explore the idea of a digital services levy, the proposal hasn’t yet cracked the list of top legislative priorities. For now, Weimer’s plan hasn’t been officially endorsed by the broader government, which means it’s still very much in the proposal phase.
If it does go ahead, Germany would be aligning itself with countries like the UK, France, Italy, Spain, Turkey, India, Austria, and Canada—all of which have already introduced digital service taxes based on revenue generated within their borders.
Possible U.S. Pushback
During his first term, Trump instructed the U.S. Trade Representative to investigate digital taxes through a Section 301 inquiry, concluding that such measures were discriminatory. That opened the door for retaliatory tariffs on imports from those countries.
Fast-forward to now: in February, Trump asked trade officials to revisit those investigations, signaling that more tariffs could be on the table if he sees U.S. firms being unfairly targeted.
Wider Concerns Around Media Power
Despite the potential for diplomatic fallout, Germany’s new leadership seems ready to take the risk. Weimer has spoken out against what he sees as “monopoly-like structures” within Big Tech, suggesting they stifle competition and centralize media control to a dangerous extent.
He even tossed out a provocative hypothetical: “If Google, under pressure from Donald Trump, were to rename the Gulf of Mexico to the Gulf of America and enforce it across all its services, it would show just how much power one platform can exert over global narratives.”
It’s a dramatic example, sure, but the underlying concern—about who gets to control information and how—isn’t so easy to dismiss. And it’s that deeper issue, perhaps more than the tax itself, that might keep this debate alive for a while.
