According to report from France Governement, The money which would be collected from this tax could be used to fund legal alternatives for buying books, films and music on the internet. Currently, Web companies like Google are only being taxed in US where their headquarters are located for all revenues generated worldwide.

According to sources, this tax can generate up to 20 million euros ($29 million) a year to help finance projects to boost online cultural content and to pay artists.

Olivier Esper, director of public affairs for Google France said ” The Proposed tax is a negative sign for the innovative business and it could slow down the innovation process.The better way was to find efficient business models which could support the content creators in much better way”.

Sarkozy also approved the report’s recommendation that France’s competition regulator review the online advertising market to assess Google’s “possible dominant position,”

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The Paris Civil Court stated that Google has violated Copyright Law by scanning complete books of French Author.

Judge of Paris Civil Court asked Google to pay amount of 300,000 euros to French Publisher Herve de La Martiniere that decided to take Google to court for digitising its books without first seeking legal permission to do so.

In addition to that Google will pay 10,000 euros per day until it removes extracts of the publisher’s books from its database.

La Martiniere, the French Publishers’ Association and authors’ group SGDL, who had begun the legal action against Google, had called for the Internet search engine giant to be fined 15m euros (£13.2m).

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