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March, 2021

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Connecticut Looking To Tax Social Media Ads

Connecticut legislators recently proposed a tax on social media ads sold by big platforms like Facebook, Twitter, which a lawmaker stating that it could create $250mn worth of windfall.

Notably, the bill has gotten support from both sides of the aisle, with Rep. Sean Scanlon (D-Guilford), and Rep. Holly Cheeseman (R-East Lyme) backing it.

The legislators didn’t specify how much ads make in the state, but they did acknowledge that they make a lot, especially in the midst of the pandemic.

Cheeseman filed it in early January 2020, just a few weeks ahead of the Internet Association, NetChoice, and the US Chamber of Commerce asking for a court injunction against a Maryland proposal that functions similarly, which was enacted via a gubernatorial veto. The Maryland bill would tax online ads in the state with expected revenue of $100mn.

The Internet Association’s 40+ members include big names like Amazon, Google, and Facebook.

The Internet Association stated that such laws would likely be in violation of the federal Permanent Internet Tax Freedom Act, which limits the amount of taxation of digital revenues, while implying that the association could sue.

The trade association stated that they’re not opposed to taxation merely that these moves were in violation of PITFA.

Connecticut Sen. John Fonfara, (D-Hartford) called foul of this move, saying that this is a classic move from the tech industry, where they call on Congress to preempt something, force cooperation but don’t actually cooperate in order to basically stonewall such efforts.

Such a tax would affect people invested in king kong marketing agency review and marketing, and time will tell if the proposal goes through in the face of all the trade associations lobbying against it.

News Corp And Facebook Cement Agreement For The AU

News Corp recently cemented a three-year agreement with Facebook Inc. Australia, the company reported early in March 2021, calling it a victory over regarding news organizations get compensation from big tech.

In February 2021, AU parliament passed a law requiring Google and Facebook pay media companies for the use of content, following negotiations that saw Facebook blocking new content across the country. The legislation got a lot of global attention, with countries like Canada and Britain considering similar steps, with the goal of ensuring that local news media is properly protected and compensated.

News Corp CEO Robert Thomson stated that the agreement with Facebook is a landmark for changing journalism in Australia, and they’re expecting it to have a big impact on news businesses across the country.

News Corp in February also struck a deal with Google for a subscription platform, as well as sharing advertising revenue and video journalism.

The Facebook agreement covers News Corp’s national newspaper, The Australian, as well as the smaller papers like the Daily Telegraph in NSW. News Corp reported that Sky News Australia also cemented an agreement with Facebook.

The details of the deal were not displaced, but Facebook News says that it expands on an old agreement in October 2019, when Facebook paid News Corp’s US publication for access to Facebook News.

Andrew Hunter stated that they’re committed to making sure the AU gets Facebook news, pointing towards the other deals between News Corp and other major media platforms.

The legislation behind this whole matter has been a must-watch topic for people in digital marketing like king kong sabri suby, as the effects of Facebook’s maneuvers affect so much in the market.