Spain’s Google Tax Proves Unsuccessful
July 31, 2015 Taxation in Spain
BARCELONA – Spain’s Google tax has suffered a spectacular failure, leading to losses of readers and profits.
The “Google Tax” enacted in Spain in 2014 has had a significant negative impact on publishers in the country, according to the result of a new study commissioned by the Spanish Association of Publishers of Periodical Publications.
The tax is charged on website which aggregate news stories, such as Google News.
As a result of the tax, many news aggregator sites ceased operations in the country entirely.
According to the results of the study, news websites in Spain saw a significant decrease in traffic over the first three month of the year as a result of the closure of the news aggregator sites, with a disproportionately high portion of the reduction being felt by smaller publishers.
It is estimated that the reduction in traffic will cost publishers a cumulative total of EUR 10 million in lost profits per year.
The tax was originally enacted after calls from some publishers claiming that aggregation services were unfairly draining profits for news websites.
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