Tongues are wagging all over this morning about an expansion of French law that would affect computer tablets – but not those running Windows.
Existing French law imposes a levy, commonly known as a blank media tax or private copying levy, on recordable media. Up until a few years ago, that meant blank CDs and DVDs – the definition was eventually expanded to include MP3 players. The funds raised from the levy are allegedly used to compensate artists for illegal downloads; the idea is that the consumer is clearly purchasing recordable media in order to rip off musicians and other artists. The French government strikes pre-emptively by charging consumers for the right to possible steal content, whether or not you actually do. Interesting policy, non?
Now, the French are considering expanding the levy to include computer tablets while exempting Windows-based tablets. That means that the levy would be specifically targeted to Android tablets and iPads.
So what gives? Like many laws and tax-related laws, in particular, the dispute comes down to a question of interpretation. The law is meant to apply to recordable media but actual computers have always been exempt. Apparently, the thought process behind this interpretation is that straight computers are for, well, computing, while smaller devices are more likely to be filled with downloadable media. Windows-based tablets are classified as full-blown computers and thus exempt while iPads and Android tablets are not.
How big a deal is it? In a competitive market, it could be enough to shift consumers from one product to another. The proposed tax would be 12 Euro – or about $16 US – on tablets with more than 40GB of internal memory. Pricing for iPads runs about the same as the pricing for Windows 7 tablets. Manufacturers and retailers worry that the disparity in levies might affect a consumer’s final choice.
The expanded law is expected to take effect in about a month though a threatened lawsuit may slow that down. Archos, a French company which manufactures and ships, among other things, Android-tablets, has reportedly threatened to sue to stop the law from being applied unevenly. Nous allons voir ce qui se passe.
Great article. That’s a rather ingenius tax indeed although I’d feel sorry for people who buy blank DVDs merely for data storage other than music or movie files.