OTT and unfair competition: Europe opens its eyes.

Although many years have denounced unfair competition from non-European operators, Only now, it seems that Europe wants to become aware of it.

Realize what has become unsustainable, only because of a devastating economic crisis, in no way justifies the shortcomings and errors of whom, at an institutional and legal level, it should have protected European businesses and citizens, beyond 20 Years ago!

When a non-European operator, sells and collects in Europe, but declares a principal place of business in a tax haven ( in defiance of the simplest rule that identifies a permanent establishment where products or services are offered LOCALLY for payment ) are competing fairly.

Come?!…quite simply by setting up a parent company in a low-tax country, usually a tax haven or similar ( Luxembourg, Ireland, Cayman Virgin Island, etc etc with laughable tax rates compared to those that European companies MUST pay on the revenues collected and invoiced ) that sells products or services at a high price to local branches ( Italian, French, Spanish, German etc. ) which in turn resell the same product or service to the end customer, with a very small markup ... all this to pay the due taxes on this small markup, while the parent company ( which is subject to a much lower rate ) acts as a collector of receipts from non-European bank accounts ...

But there is more!

The mechanism described above is the same that is also adopted by many large European companies, but with less effectiveness, not being able to "translate" the revenue flows without "balancing" the accounting situations ...

What OTTs and allies do, it is at an even higher step: be legally and fiscally invisible.

A striking case among all: Expedia, giant in the tourism sector, owns a galaxy of tourist sites and platforms that belong to the American multinational.

The economic power is such as to allow direct and indirect control ( ex art. 2359 c.c. ) on many realities that at first sight could be independent.( just to name a few platforms that are dependent on Expedia: Venere, Trivago, Hotels, etc. etc )

One of them is the Tripadvisor platform, officially under the direct control of Expedia until three years ago and now apparently (!) independent, is operating with ABUSIVE platforms throughout the European territory!

This is clear from the European law of 2008, implemented in Italy the following year, as regards the advertising obligations for companies, both European and non-European , which operate on the market through a geo-localized site in Europe ( you are in Italy, .it, .fr in France , .sp in Spain etc. ), have the obligation to declare a local registered office and therefore also the obligation to open a local VAT number ( Italian in Italy, French in France, Spanish in Spain etc. )

In the face of this, we still wonder why Europe is struggling so hard to get out of the crisis, when our businesses are competing on an unequal basis against tax-free operators like Tripadvisor does!!!

And in the meantime European tour operators go bankrupt and close, sending hundreds of workers home!

And our politicians are good, control bodies and local and European institutions!!!!!!!!

But what is this unfair competition in terms of tax evasion alone: there are those who hypothesize 1000 BILLION Euros a year !!! ( source article on Key4biz )

But the "collateral" damage, if all this were confirmed as plausible to think, they would be much greater, considering the impact on employment and on the roots of companies in the area to enhance local tourist assets ... the only preciousness that cannot be stolen, but only snatch as these shady guys are doing!

While our political situation mirrors the moment of disorientation and litigation of the factions in the field, the OTTs continue to amplify the haemorrhage of wealth from Europe!

In Italy, discussions are still ongoing as to whether to apply, or not, a web-tax “pantomime” ( article on key4biz ), while in France they have already woken up and imposed a tax in favor of publishers ...( source the Sun 24 Ore )

The climb is still long, but if our politicians do not allow companies to compete at least on an equal footing with other market players, soon there will be no funds to pay even their "small salaries" ... maybe someone besides opening their eyes, will begin to act!