France Attacks Web Ad Revenues

France, known for its harsh online piracy laws, has announced that it plans to tax internet advertising revenue from companies like Google (NASDAQ: GOOG). The proposal, which will also affect MSN (NASDAQ: MSFT) and Yahoo! (NASDAQ: YHOO), will tax the companies if the user clicking the ad is doing so out of France.

The levy has the blessing of French premier Nicolas Sarkozy who has repeatedly tried to project himself as a defender of France’s cultural heritage, his most recent attack being on Google’s proposed online library. The funds so generated are proposed to be used to supportive creative industries hit by the digital revolution. A timeline has not been released, but critics point out that compensation in the digital era is a complex issue.