Google faces calls for dismantlement from Germany's culture minister
In a bold move, German Culture Minister Wolfram Weimer has called for Google to be broken up, citing concerns over the tech giant's dominance in the digital advertising industry and its tax practices. Weimer's call comes amidst ongoing antitrust investigations by the European Commission.
Weimer's endorsement follows a €2.95 billion fine issued by the European Commission against Google for breaching EU competition law. The Commission has suggested a divestment of parts of Google's advertising tech business as a way to address antitrust concerns.
Google, however, contends that it is just one player in a crowded marketplace. A spokesperson for the company stated that regulation should support the development and use of innovative technologies, not impose unjustified fines or levies on specific companies.
Weimer is particularly concerned about Google's tax practices, stating that the company pays minimal taxes and contributes little to society in Germany. This concern is shared by many, as Google's services create billions of value for the German economy, according to the company's spokesperson.
The European Commission has given Google until early November to remedy the alleged abuse or face action. However, the Commission has recently withdrawn a proposal for a European digital tax, a move that could potentially slow down the process of regulating tech companies' tax practices.
Weimer's comments come after U.S. President Donald Trump's repeated criticisms of EU regulations for tech companies. Trump has recently threatened to impose "significant additional tariffs" on products from countries that take action against U.S. tech companies.
Business leaders in Europe have expressed concern that more tech regulation may hinder, not help, Europe's growth. Weimer, however, identifies large tech companies and certain industry lobby groups as potential opponents of taxes and regulations in the digital economy, viewing them as obstacles to the development of innovative technologies.
Wolfram Weimer, a journalist before joining the government, was previously associated with Welt, a sister publication of POLITICO in the Axel Springer Group. Germany has the power to bypass European regulation and introduce a digital levy at the national level, modeled on Austria.
The antitrust investigation against Google is ongoing, and the outcome remains to be seen. However, Weimer's call for Google to be broken up marks a significant step in the ongoing debate about the role of tech companies in the digital economy and their responsibilities towards society.
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