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U.S. Notifies World Trade Organization Against “Discriminatory” New Taxes on Digital Giants

The OECD is spearheading talks aimed at forging a new global agreement on taxing technology and digital giants who often declare their income in low-tax nations, depriving other countries of billions in revenue.

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WTO
World Trade Organization (WTO) headquarters in Geneva, Switzerland, July 26, 2018. VOA

The U.S. is weighing a complaint at the World Trade Organization against “discriminatory” new taxes on digital giants such as a Facebook and Google which are being planned by France and other EU nations, a top US trade official said Tuesday.

“We think the whole theoretical basis of digital service taxes is ill-conceived and the effect is highly discriminatory against US-based multinationals,” Chip Harter, a Treasury official and US delegate for global tax talks, said in Paris.

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But that overhaul is expected until next year at the earliest, prompting France, Britain, Spain, Austria and Italy to move ahead with their own versions of a so-called “digital services tax” as soon as this year.
Pixabay

Speaking ahead of two days of talks at the Organization for Economic Cooperation and Development (OECD), Harter added that “various parts of our government are studying whether that discriminatory impact would give us rights under trade agreements and WTO treaties.”

The OECD is spearheading talks aimed at forging a new global agreement on taxing technology and digital giants who often declare their income in low-tax nations, depriving other countries of billions in revenue.

But that overhaul is expected until next year at the earliest, prompting France, Britain, Spain, Austria and Italy to move ahead with their own versions of a so-called “digital services tax” as soon as this year.

social media
The OECD is spearheading talks aimed at forging a new global agreement on taxing technology and digital giants who often declare their income in low-tax nations, depriving other countries of billions in revenue. Pixabay

Last week France unveiled draft legislation that would set a 3.0-percent levy on digital advertising, the sale of personal data and other revenue for tech groups with more than 750 million euros ($844 million) in worldwide revenue.

It would be applied retroactively from January 1, 2019, while the measures in the UK and other European countries might not come into effect until next year.

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“We do understand there’s political pressure around the world to tax various international businesses more heavily, and we actually agreed that that is appropriate,” Harter told journalists.

“But we think it should be done on a broader basis than just selecting a particular industry,” he said. (VOA)

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Four App Startups Sue Social Media Giant Facebook For Anti-Competitive Behaviour

The documents was obtained by NBC News and international journalistic partners

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Facebook
Facebook replied to the lawsuit, saying it has no legal basis. Pixabay

Blaming Facebook of anti-competitive behaviour, four app startups have sued the social networking giant, alleging that it inappropriately revoked developer access to its platform in order to harm competitors.

The lawsuit, filed in the US District Court for the Northern District of California on Thursday, is based on more than 7,000 pages leaked last year “from an ongoing lawsuit brought by another defunct startup known as Six4Three, which made a short-lived app known as Pikinis”.

The documents was obtained by NBC News and international journalistic partners.

The documents showed that CEO Mark Zuckerberg and other Facebook officials used their market position to squeeze potential rivals and competitors from 2011 through 2015.

“This action seeks to halt the most brazen, willful anticompetitive scheme in a generation — a scheme that verges on final, irreparable completion as of the date of this Complaint,” the complaint alleged in the class-action lawsuit.

“Facebook stands today as a paragon of unbridled market power”, said the lawsuit filed by The lawsuit was filed by LikeBright, Lenddol, Cir.cl Inc and Beehive Biometric Inc.

Facebook
Blaming Facebook of anti-competitive behaviour, four app startups have sued the social networking giant, alleging that it inappropriately revoked developer access to its platform in order to harm competitors. Pixabay

Facebook replied to the lawsuit, saying it has no legal basis.

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“We operate in a competitive environment where people and advertisers have many choices. In the current environment, where plaintiffs’ attorneys see financial opportunities, claims like this aren’t unexpected but they are without merit,” a company spokesperson was quoted as saying. (IANS)