France plans 'Google tax' on internet searches

The levy on advertising revenue is the latest plank in France's drive to regulate the internet, which has seen it enact some of the world's toughest antipiracy legislation.

Besides Google, the tax would target other large operators in Europe such as Microsoft and Yahoo! whether or not their offices are in France. Google's European headquarters are in Ireland, but under the proposal, the operator would pay a levy every time a French internet user clicks on an advertising banner or sponsored link on its sites.

Guillaume Cerutti, one of the authors of the report said the tax would put an end to "enrichment without any limit or compensation".

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