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The Online Advertising Tax: A Digital Policy Innovation

A Policy Brief by The Policy Observatory, published by University of Westminster Press

By Christian Fuchs

Google and Facebook currently control close to two-thirds of global advertising revenue. While dominating the online advertising market, these two companies have thus far avoided paying adequate taxes.

This CAMRI policy brief presents a new policy innovation, the online advertising tax. Considering the key role of user activity and user data for the value of Google and Facebook’s services, it explains how digital advertising companies’ revenues could be taxed based on the respective country in which targeted users are located.

The author reviews existing policy arguments and policy options and sets out practical steps to ensure that tax avoidance by online advertising companies is mitigated. Furthermore, he illustrates how tax revenues could be used to support public service internet platforms.

How to cite this Policy Document

Fuchs, C. 2018. The Online Advertising Tax: A Digital Policy Innovation. London: University of Westminster Press. DOI: https://doi.org/10.16997/book24


This book distributed under the terms of the Creative Commons Attribution + Noncommercial + NoDerivatives 4.0 license. Copyright is retained by the author(s)

The Policy Observatory

About The Policy Observatory

The CAMRI Policy Observatory aims to amplify the impact of our research on policy debates and developments nationally, internationally and globally. The Observatory engages in outreach, networking and publication activities, seeking to establish links with a variety of policymakers and stakeholders, including civil society, media organisations, politicians and government officials.


The Policy Observatory
21 June 2018
Research Area
Published By
University of Westminster Press
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