The Netherlands fiercely against Google taxBack
European telecom and internet providers want tech and streaming companies such as Google and Netflix to pay a fee for the internet traffic they generate. This would mean that subscribers will most likely have to pay more for the films they watch. The Netherlands is therefore strongly against the plans.
Internet traffic has increased significantly in recent years. To handle this growth, internet providers must make investments in their network. They think it is unfair that they have to pay the costs for the data traffic caused by tech and streaming companies. Interest group ETNO therefore wants tech companies such as Google to contribute to the investment costs, and has succeeded in getting the subject on the agenda of the European Commission. It will now investigate whether a compensation is required.
The Netherlands is very concerned about the plans. It fears that consumers will have to pay extra and that this will not lead to extra investments in the construction or quality of the internet.
In addition, internet providers in Europe must be neutral. This means that they are not allowed to favor, subordinate or block internet services. If tech and streaming companies have to pay for their internet traffic, this could mean that internet providers will suspend or block services if a tech company does not want to pay.
The Netherlands also believes that a tax is not economically efficient, because the costs are ultimately passed on to the consumer. And finally, research shows that companies rarely use extra income to actually invest.