Observed Signal · Mar 18, 2026 · Policy Update · Source: Digiday · Impact: 4/5 · Sentiment: Negative
Meta Passes European Digital Services Tax to Advertisers
Meta will begin charging advertisers a new "location fee" on July 1 to cover digital services taxes (DST) and similar location-based levies imposed on the company in certain European jurisdictions. The fee will be applied as a percentage of ad costs and added to invoices (with VAT applied on top). Current listed rates are 5% for Austria and Turkey, 3% for France, Italy and Spain, and 2% for the U.K., though Meta says jurisdictions and rates may change. Advertisers and agency representatives expressed concern about budgeting, reporting and the impact on smaller brands. The article notes Google has been passing DST costs to advertisers since 2020. Meta provided a statement calling the approach "in line with industry standards."
Major platform (Meta) policy change shifting local tax costs onto advertisers affects ad pricing, budgeting, campaign reporting and market allocation across key European markets; follows similar moves by Google.
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Key Takeaways & Evidence Grounding
- Meta will introduce "location fees" on July 1 to cover digital services taxes (DST) and other location-based fees.
- Location fees are charged as a percentage of ad costs and added to advertiser invoices; VAT will apply on top.
- Current location-fee rates listed by Meta: Austria and Turkey 5%; France, Italy and Spain 3%; U.K. 2%.
- Advertisers and agency reps (RoarADX, Prospect Knight, Zeno Group) expressed concern about budgeting, forecasting and market reallocation.
- Google has been passing DST costs to advertisers in Europe since 2020.
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Meta Ads to Charge Location Fees in Europe
Meta is introducing Standortgebühren (location fees) on Meta Ads in Europe to offset Digital Service Taxes (DSTs). Historically Meta covered these costs, but advertisers will now bear them as separate charges. The fees take effect July 1, 2026 and will appear on invoices as a separate line item, not deducted from theAds Manager budget. Rates vary by country: Austria 5%, France 3%, Italy 3%, Spain 3%, Turkey 5%, United Kingdom 2%. Germany is not listed, but advertisers may still incur fees if impressions are delivered to Austria. Fees are based on where ads are delivered; if campaigns run across multiple countries, each country’s fee is added per country. VAT applies to the total amount (advertising spend plus location fee), and location fees do not apply to other paid WhatsApp messages. Meta notes attribution updates to improve measurability of Social Media Ads.
Google launches unified agentic AI for Gemini
At a Google Cloud event on Thursday, Google announced it is bringing agentic AI to its Gemini assistant, launching a unified agent that can autonomously plan and execute tasks on behalf of users. Aimed initially at businesses, the agent can connect to internal systems and external tools, use custom skills, and even choose from third-party models like Anthropic's Claude. It will have its own Workspace account with an email address, and will write its own audit trail. Early testers include On, Shopify, and PayPal. Gemini has over 1 billion monthly active users, and nearly 90% of Fortune 100 companies use Gemini Enterprise.
AWNY, Jupiter Fest Spotlight Agentic Ads and Open Web
Advertising Week New York and the inaugural Jupiter Festival Miami highlighted the industry's shift toward agentic advertising and anxieties about the open web's future. Major announcements included TikTok's off-platform ad expansion and a new AI shopping agent, Meta's AI campaign assistant testing, and OpenAI's visual ads introduction. Paramount's $110 billion acquisition of Warner Bros. Discovery closed, forming Skydance. Key themes were the threat of AI to publisher traffic, the rise of AI visibility tools, the early stage of agentic media buying, unsolved cross-platform measurement, and the booming sports and retail media sectors. Deals included PubX's acquisition of Compliant and a $5 million Series A, and OpenAI's reported $30 billion round talks with BlackRock and UAE investors.
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