Meta Platforms will impose a new fee on advertisers, ranging from 2% to 5%, to cover digital service taxes and other government levies in specific countries. The fee, effective from May, will apply to ads based on the audience's location and affects six nations, including the UK, France, and Turkey.
This move aligns Meta with industry peers like Google and Amazon, shifting these tax costs to advertisers after previously absorbing them. The company states this is a response to the evolving regulatory landscape.
The digital taxes themselves, which target revenue earned by large tech firms in individual countries, have been criticized by the U.S. administration as discriminatory against American companies.
Main Topics: Meta's new advertising location fee, digital service taxes, regulatory compliance, and industry alignment.
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 âsaid â in a â post on its website, following in the footsteps of Alphabet's Google and Amazon.
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 May and will â also cover other âgovernment-imposed levies.
"Until now, Meta has âcovered âthese additional costs. These changes are â part of Meta's ongoing effort to respond âto the evolving regulatory landscape and align âwith industry standards," the company said in the blog.
The location fees are determined by where the audience is located and not the advertisers' business location.
Meta listed six countries âwhere the fees will apply, ranging from 2% in the United Kingdom to 3% in France, Italy â and Spain and 5% in Austria and Turkey.
Digital taxes, levied as a percentage of the revenue âearned by big tech companies in the individual countries, have drawn criticism from the U.S. administration, which said it discriminates against U.S. companies.
Bloomberg was the first to report about Meta's new location fees.
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 May and will â also cover other âgovernment-imposed levies.
"Until now, Meta has âcovered âthese additional costs. These changes are â part of Meta's ongoing effort to respond âto the evolving regulatory landscape and align âwith industry standards," the company said in the blog.
The location fees are determined by where the audience is located and not the advertisers' business location.
Meta listed six countries âwhere the fees will apply, ranging from 2% in the United Kingdom to 3% in France, Italy â and Spain and 5% in Austria and Turkey.
Digital taxes, levied as a percentage of the revenue âearned by big tech companies in the individual countries, have drawn criticism from the U.S. administration, which said it discriminates against U.S. companies.
Bloomberg was the first to report about Meta's new location fees.
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