Mamma Mia ! Italy Passes the Google Tax

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Italy passes the Google Tax. In what seems to be a law that violates European Union rules the Italian Senate has passed a law that will require companies to purchase their Internet ads locally.

Forbes covered it here

From the article:

The Italian Senate has now passed the “Google Tax” and Italian lawmakers really do seem to be entirely blind to the fact that this law is illegal under European Union rules that cover trade and the establishment of companies. But what’s worse than this is that even if the law were in fact legal it wouldn’t in fact achieve what the proposers are saying that it would. Here’s Bloomberg:

Italy’s Parliament today passed a new measure on web advertising, the so-called “Google tax,” which will require Italian companies to purchase their Internet ads from locally registered companies, instead of from units based in havens such as Ireland, Luxembourg and Bermuda.

The tax has stirred controversy, with some lawyers saying it probably violates European Union laws regarding non-discrimination over commercial activity and could be subject to legal challenges.

Yes, that is, clearly and obviously, illegal under EU laws. You’re just not allowed to discriminate, in law, among people based in different EU countries. So much so that, for example, when the British government wanted to make an order for some new trains it could not favour the UK based company over a German bid. If you’re not allowed to have national preference in government acquisition then obviously you’re not allowed to tell private companies that they must follow some form of national preference.

The Star Tribune covered it here

ROME – Italy’s Parliament on Monday passed a measure on Web advertising, the so-called Google tax, which will require Italian companies to purchase their Internet ads from locally registered companies that pay taxes on them, instead of using firms based in such havens as Ireland, Luxembourg and ­Bermuda.

The tax has stirred ­controversy, with some lawyers saying it violates European Union laws regarding nondiscrimination over ­commercial activity.

In July, at the request of the Group of 20 nations, the Organization for Economic Co­operation and Development (OECD) proposed a blueprint to fight strategies used by such companies as Google, Apple and Yahoo to shift taxable profits into havens. Italy now becomes the first major European ­government to pass legislation to combat the problem of moving corporate taxable earnings into havens, which costs Europe and the United States over $100 billion a year.

Italy’s measure is “fairly obviously contrary to E.U. law,” said Sol Picciotto, an emeritus professor of law at Lancaster University in Britain. Still, he said the law “will put further pressure on the OECD to sort it out.” The OECD isn’t scheduled to complete its plan until the end of 2015.

Comments

  1. says

    Independent Marketing Analyst/Strategist at UseBiz.com / (.COM ) URL Centric Marketing

    It seems the italians are fed up with Googles Shell Game Tactics.
    More to come, and the stranglehold on the webs expansion loosens and allows Online Businesses a chance on utilizing their own traffic without Google Interloping.

    Our question is Why would any Smart Online Marketer use Googles Traffic Dilution Pool??

    Only the DUMB ONLINE Marketers use Googles SEO Manipulated Search Engine Marketing.

    Success often comes with a price, our advice pay the price upfront for Backend revenue success online.

    The worst Marketing Advice is usually supplied by some Ad company guy with a power point pony show extolling the questionable benefits of naming your company a nonsensical or contrived name.

    We see things very differently. 80% of your Marketing budget needs to be allocated to a well (Internally Branded) .COM Profit Center. The rest of the 20% should be held in reserve till absolutely needed. There is no rush to pay the Ad men unless needed. Remember 100s if not 1000s will be in a search engines line up. This Massive line up of your competitors causes an Online business to be lost in the shuffle. (Market Saturation Obsolescence) is steering the SMART money away from SEO Manipulated Search Engine Market in droves.

    What many business owners are not told by their SEO manipulator friends, is this key boondoggle of SEO Manipulated Marketing , and it is this !

    Your businesses most dreaded competitors are often on the same Search Engine page as your companies are and are just one Click away from you as a choice.

    Now come on now, do you think this is Smart Marketing?

    It may be smart for Google and their Symbiotic Partners, SEO manipulators ! But a very stupid choice for the business owner, We think.

    This phenomonon can be TOTALLY, avoided by using Pure Play Direct Navigation .COM Generics,ONLY.

    Seriously, the Smart Marketers are not swallowing Googles,SEO Manipulated Search Engine Kool-Aid here.

    The Candid truth of this matter is the End-Users will find that Branding Internally, not Externally, through the use of a (Pure Play .COM site), will enjoy a residual recall response from Consumers at the Browser.

    OCCAMS RAZOR

    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

  2. says

    Jeff,

    I totally agree that is now, and will become more futile to garner one of three tops search ranks for any keyword on Google in the hopes of getting a click before the competition listed right below you (as you wisely pointed out) does. Our marketing mantra is “Don’t Compete Conquer” by not playing in the overpopulated search rank game but rather by designing your own direct traffic marketing strategies (that start with a strong brand domain) and working to drive traffic and gain customer loyalty and eventually market share when they share your easy to remember name and great products and services with other friends and associates.
    Saves money, eliminates competition, focuses customer attention solely on you… Sounds like smarket marketing from my viewpoint.

  3. says

    The Search Engines Traffic Dilution Pools, come at great costs to the online business owners bottom line. They in effect are paying high extortion fees to both the Search Engine and at the same time paying extortion fees to their symbiotic SEO partners indefinitely! For what?

    To dilute their recognized brand ! along with allowing the search engines to manipulate and interlope traffic meant for them.

    Remember 100s if not 1000s will be in a search engines line up. This Massive line up of your competitors causes an Online business to be lost in the shuffle. (Market Saturation Obsolescence) is steering the SMART money away from SEO Manipulated Search Engine Market in droves.

    What many business owners are not told by their Search Engine and SEO manipulator friends, is this key boondoggle of Search Engine and SEO Manipulated Marketing , and it is this !

    Your businesses most dreaded competitors are often on the same Search Engine page as your companies are and are just one Click away from you as a choice. Remember you are paying a double barrel fee schedule by the Search Engine and their symbiotic partners the SEO Traffic Manipulators, whose fees last indefinitely for effectively losing your companies online identity in the Search Engines massive Traffic Dilution Pool (Page Rank System).

    Now come on now, do you think this is Smart Marketing?

    It may be smart for Google and their Symbiotic Partners, SEO manipulators ! But a very stupid choice for the business owner, We think.

    This phenomonon can be TOTALLY, avoided by using Pure Play Direct Navigation .COM Generics,ONLY.

    Seriously, the Smart Marketers are not swallowing Googles,SEO Manipulated Search Engine Kool-Aid here.

    The Candid truth of this matter is the End-Users will find that Branding Internally, not Externally, through the use of a (Pure Play .COM site), will enjoy a residual recall response from Consumers at the Browser.

    OCCAMS RAZOR

    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

  4. johnuk says

    The EU is slowly but surely falling apart. Of course the EU doesnt publicise this but I would bet that within 5 years many of the Countries currently in the EU will either pull out, or will only stay on largely changed treaties. UKIP an upcoming political party in the UK, and a serious challenger to current bunch of tossers in Govt , will likely get the UK out of the EU ,and cannot come soon enough. Would the USA stand for a foreign organisation,like say WIPO ,telling you what shape bananas should be, what time you have to stop work etc etc ?. I doubt it.

  5. John Berryhill says

    “Would the USA stand for a foreign organisation,like say WIPO ,telling you what shape bananas should be, what time you have to stop work etc etc ?”

    That’s maybe not the right analogy. The name is “USA” for a reason. Our system of government is a federal government that addresses matters of common interest among a number of states. And, yeah, we fought a bloody civil war over it. The union won.

  6. David says

    @ johnuk

    Whilst I am not the biggest fan of the current UK government set up, UKIP are a bunch of low brow racists who are making noises on the coat tails of the current publicity regarding immigration.

  7. johnuk says

    @David I would disagree. They are NOT racists at all. They ARE anti EU, They are NOT anti any Colour, class or creed. Being anti EU is not being racist, it is being sensible. They fact is the whole basis of the EU is flawed ,as is beginning to be realised. Who , but a fool, would sign a treaty saying effectively that the whole population of 20 other odd Countries could come and live in our Country WITHOUT firstly sorting out the minutiae of such a proposal ?. It was clearly a fool/s who signed such a treaty because that is what we have. We ,in UK. do not have the jobs, houses, infrastructure etc to support ourselves let alone millions of immigrants from other Countries. The EU as it is ,is UNsustainable and you will now watch as various Countries UNpick what they have already stupidly agreed to !! All we can say is “wait and see” . What you said is wrong, and what is spouted by people who really have no other answer to the arguments about being unable to support massive immigration of any race etc

  8. johnuk says

    @JohnBerryhill, Yes agreed it was’nt the best analogy. The thing is the EU is like telling oil & water “you must mix” ,it just ain’t going to happen . What the UK should have done is sign a comprehensive trade agreement such as Switzerland did. Anyway I guess enough politics for now for a domain forum ,lol. Happy New Year to everyone anyway and better get back to my German Court case.

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