France Wants to Take a Bite Out of Google  

President Sarkozy recently stated that he wants to tax Google, internet service providers, and other search engines so that the money can be given to France's music and publishing industries as part of a push to strengthen copyright protections. Speaking at the Cite de la Musique in Paris, he claimed that he was trying to support a music industry that has been hard hit by piracy. The money received from Google would go to help pay for music cards that would be given to the French youth so that they can legally obtain music.

The tax is also seen by Sarkozy as a way to repatriate some of the money that French users and advertisers have sent Google's way. He claims that it isn't fair that they only pay taxes in the countries where they are based. Google's European Headquarters are currently based in Ireland so it pays taxes there. The ramifications could be significant as this move would increase the cost of advertising. It may also give other countries precedent to attempt to create their own taxes to raise money at the cost of the internet giant.

Google can't seem to get a break in France. In December, a French court ruled that Google had violated copyright laws by scanning French books and posting portions online. Sarkozy is planning on asking the country's Competition Authority to investigate Google for abuse of its dominant position.

Read the article at Cnet.