By Foo Yun Chee March 10 (Reuters) - Meta Platforms will charge advertisers a location fee ranging from 2% to 5% to cover digital service taxes imposed by some countries, the U.S. tech giant said in a
Meta to Charge Advertisers 2-5% Location Fee to Cover Europe’s Digital Taxes
Meta’s New Location Fee for Advertisers Explained
By Foo Yun Chee
Overview of the Location Fee
March 10 (Reuters) - Meta Platforms will charge advertisers a location fee ranging from 2% to 5% to cover digital service taxes imposed by some countries, the U.S. tech giant said in a post on its website, following in the footsteps of Alphabet's Google and Amazon.
Scope of the Fee
The fee, for image or video ads delivered on Meta platforms including WhatsApp click-to-message campaigns and marketing messages together with ads, will apply from July 1 and will also cover other government-imposed levies.
Meta’s Statement on the Change
"Until now, Meta has covered these additional costs. These changes are part of Meta's ongoing effort to respond to the evolving regulatory landscape and align with industry standards," the company said in the blog.
Details of the Location Fee
How Fees Are Determined
The location fees are determined by where the audience is located and not the advertisers' business location.
Countries and Fee Percentages
Meta listed six countries where the fees will apply, ranging from 2% in the United Kingdom to 3% in France, Italy and Spain and 5% in Austria and Turkey.
Background on Digital Taxes
Criticism and Industry Response
Digital taxes, levied as a percentage of the revenue earned by big tech companies in the individual countries, have drawn criticism from the U.S. administration, which said it discriminates against U.S. companies.
Reporting and Editorial Notes
Bloomberg was the first to report about Meta's new location fees.
(Editing by Mark Porter)
