Network effects

The recent proposal of the Spanish government, to tax the income generated in Spain by the major digital companies, is an effort aligned with that of other European Union neighbours to prevent possible evasion and erosion of the tax base. A laudable objective, and one shared by the whole world’s tax authorities.

In just a few years the big technology companies have gone from being admired for their constant innovation, offering us new products and services, to being labelled as dangerous all-powerful giants. In the recent Davos forum, without more ado, George Soros accused Facebook and Google of being “obstacles to innovation” and a “menace to democracy”.