Gadget Makers Want Changes To Europe’s Media Copying Levy
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More tussling over Europe’s taxes on big digital businesses: Consumer electronics firms like Apple (NSDQ: AAPL), Sony (NYSE: SNE) and Research in Motion (NSDQ: RIMM) are lobbying the European Commission to change a levy on gadgets like MP3 players and printers, claiming it’s inconsistent, overly complex and cost them €2 billion ($2.8 billion) in 2009.
SEE ALSO: Private Copying Levy: Hardware Makers Ready For Europe-Wide ‘iPod Tax’?
The levy applies to 22 European countries, and it covers any device that can be used to copy digital media. Hardware firms have been in talks with the agencies that collect the levies for the last 18 months, but those talks broke down this week, reports the FT.
Like yesterday’s news of a proposed French “Google (NSDQ: GOOG) tax” aimed at online advertising revenues, this European levy, which was established through the Copyright Directive, is aimed at compensating copyright holders. In this case, the tax is meant to offset revenue claimed to be lost from personal copying.
DigitalEurope, the lobby group representing 50 of these companies, says that talks between the electronics firms and Gesac, the umbrella organisation for the collecting societies, “failed to deliver any concrete results or a way forward,” according to Bridget Cosgrave, director of DigitalEurope.
Although the charges apply in 22 countries, they differ across them. The BEUC, a consumer group that has allied with DigitalEurope points out (via EurActiv) that the same MP3 player can face a levy of €15 levy in Austria, €25 in France but only €3.15 in Spain.
Ireland, UK, Malta, Cyprus and Luxembourg are currently exempt from the law.
@ingridlunden
Jan 8, 2010 4:35 AM ET
Posted In: Gadgets, Legal, Regulatory, Countries, Europe
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