Meta Platforms announced it will begin charging advertisers a location fee, set between 2% and 5%, to offset digital service taxes imposed by several countries.
This new fee, effective July 1, will apply to image and video ads delivered on Meta's platforms, including WhatsApp click-to-message campaigns. The company stated these changes are a response to the evolving regulatory landscape and align with industry practices. Previously, Meta absorbed these additional costs.
The location fees are calculated based on the audience's location, not the advertiser's business address. The percentage varies by country, with the United Kingdom at 2%, France, Italy, and Spain at 3%, and Austria and Turkey at 5%.
These digital taxes, levied as a percentage of revenue earned by large tech firms in specific nations, have faced opposition from the U.S. administration, which argues they unfairly target American companies.