Meta Platforms has announced that it will introduce a new location-based fee for certain advertisements delivered to audiences in several European and neighbouring markets. The measure is intended to offset digital services taxes (DSTs) and other location-based levies imposed by governments on large technology companies.
The company said the change will take effect on 1 July and will apply to image and video advertisements delivered on Meta platforms. This includes advertising formats such as campaigns encouraging users to contact businesses through messaging services, including WhatsApp click-to-message campaigns, as well as marketing messages combined with advertisements.
The fee will range from 2% to 5%, depending on the jurisdiction where the advertisement is delivered. Importantly, the charge is determined by the location of the audience receiving the advertisement rather than by the advertiser’s business location. As a result, advertisers may incur the additional fee when their ads are displayed to users located in certain countries, regardless of where the advertiser itself is based.
According to the company, the location fee will apply in Austria and Türkiye at a rate of 5%, in France, Italy, Spain at 3%, and in the United Kingdom at 2%. The fee will be calculated based on the value of ads delivered in those jurisdictions. For example, if an advertiser delivers USD 100 worth of advertising to users in Italy, the advertiser would be charged USD 100 for the advertising service plus a USD 3 location fee, resulting in a total charge of USD 103.
Meta explained that the fee will appear as a separate line item on advertisers’ invoices or transaction statements. The charge will not form part of the advertiser’s campaign budget, meaning that the total amount billed may exceed the advertiser’s preset advertising spend once the location fee is added.
In a statement published on its website, the company said it had previously absorbed these additional costs itself. “Until now, Meta has covered these additional costs. These changes are part of Meta’s ongoing effort to respond to the evolving regulatory landscape and align with industry standards,” the company said.
The list of jurisdictions where the fee applies, as well as the applicable rates, may change over time as more governments introduce digital services taxes or other location-based levies.
Meta’s move follows similar steps taken by other major technology companies. Google, owned by Alphabet, and Amazon have previously implemented surcharges to reflect the cost of digital services taxes in certain markets.
Digital services taxes are typically levied as a percentage of revenue generated by large digital platforms from users located in a particular country. These taxes have attracted criticism from U.S. policymakers, who have argued that they disproportionately affect American technology companies. As governments continue to develop taxation frameworks for the digital economy, companies operating large online platforms are increasingly adjusting their pricing structures to account for these additional regulatory costs.