Egypt proposes taxing advertising revenues of Facebook and Google

02 Jul 2018

Parliamentarians in Egypt are proposing taxing the advertising revenues of Facebook and Google, according to a number of sources including iAfrikan and Egypt Today.

According to Egypt Today, Parliamentarians believe a tax levied against the advertising revenues of large tech platforms will help “protect the Egyptian advertising market.”

The proposed measure is one of many being considered by Egypt’s Parliament.

In a statement to Egypt Today, John Talaat, deputy head of the Communications and Information Technology Committee stated, “These taxes will be the first step to confront social media advertisements. Other countries developed strategies to control this kind of ads. We can do it in our country as well [sic].”

Egypt Today also states Tamel Abdel kader, deputy of the Parliament’s Culture and Media Committee, told it that the Egyptian Government should begin drafting laws to control search engines and social networks.

Abdel kader believes failing to do so may result in a negative impact on society.

Facebook’s Q1 earnings for 2018 were well above expectations. It accounted for revenue of $11.97 billion and added 48 million daily active users (DAUs). Total daily active users are now 1.449 billion.

Moreover, mobile traffic accounted for 91 percent of Facebook’s ad revenue.

Google meanwhile amassed $31.15 billion in revenue in Q1 of 2018, $26.6 billion of which came from its advertising services.

Both platforms have faced intense scrutiny from public officials and news organizations in recent years, particularly over illegal content, political advertising and data protection.

New data privacy regulations, including the EU’s GDPR, California’s Data Privacy Protection Act, proposed data protection reforms in India and the forthcoming ePrivacy regulation, will also likely add to tech platforms’ woes.

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