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October 27, 2013

Israel Bill makes it Mandatory for Google to share 7% of Israeli revenues with Local content providers

Israel imposes 7% tax on Google

A new Bill passed by Israel Cabinet " would  would force Google to share 7% of Israeli revenues with websites - Business Israel News | Haaretz: "Google and other search-engine companies will have to set aside 7% of their Israeli revenues for local content providers, according to a new bill designed to help break up the country's concentrated economy.

The bill, proposed Wednesday by MK Erel Margalit (Labor), would create a special committee and nonprofit company to collect the money from the firms and distribute it. Margalit singled out Google, the largest company in the sector.

"Google's concentration [of economic power] comes at the expense of Israeli creativity," said Margalit. "While the media are weakening, search engines are getting stronger and becoming the indisputable sheriff of content management and navigation on the Web …. The revenues from content and production must be split among their owners and not accumulate in the hands of one large body.""

Google Israel’s revenues are not published, but analysts put them at between NIS 400 million and 500 million annually - and they are believed to be growing fast.