Italy Approves ‘Google Tax’ on Internet Companies

Italy’s Parliament 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. Italy’s measure is “fairly obviously contrary to EU law,” said Sol Picciotto, an emeritus professor of law at Lancaster University in the U.K. 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.

[Dec 23]