MILAN: Facebook parent company Meta faces a potential tax bill of around 870 million euros ($925 million) in Italy after prosecutors launched an investigation into the company, two sources with direct knowledge of the matter said on Wednesday.
The investigation was opened by Milan magistrates at the request of the European Public Prosecutor’s Office (EPPO), which asked the Guardia di Finanza police and the Italian Revenue Agency to check if there is a case for user registrations to be subject to tax.
Neither the EPPO, which is based in Luxembourg, nor Meta were immediately available for comment.
News of an administrative tax audit into Meta was first published on Wednesday by Italian daily Il Fatto Quotidiano.
The two sources said that investigators believe that free membership on Meta platforms comes in return for access to user data and should be classified as an exchange of services, therefore subject to VAT sales tax.
Italy’s tax police and revenue agency calculated a model under which Meta would have had to pay around 220 million euros of sales tax in Italy in 2021, according to the sources.
The figure for the period back to 2015 was calculated at 870 million euros.
One of the sources explained that the most relevant point was the establishment of a link between free access and data transfer as a taxable transaction, which could have repercussions for other multinationals and other countries in Europe.
The assessment by the Italian authorities has been brought to Meta’s attention and a dialogue was under way between the company and the revenue agency, according to the sources.
The company may decide either to accept the results of the investigation and pay the requested amount, or contest it and open an administrative dispute.
In recent years, the Milan Prosecutor’s Office has opened several tax investigations against multinational tech companies such as Google and Apple.
Usually, once an agreement for payment has been reached, the criminal investigation is closed.
Italy pursues Facebook’s Meta for $925 million in sales taxes
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Italy pursues Facebook’s Meta for $925 million in sales taxes
- Link between free access and data transfer to be considered a taxable transaction, Italian Revenue Agency said
Saudi Arabia strengthens global ranking in 2026 Soft Power Index
- UAE maintains 10th place, Qatar climbs 2 spots
DUBAI: Saudi Arabia climbed three positions to 17th place in this year’s Soft Power Index, released on Tuesday by marketing consultancy Brand Finance.
Other Gulf nations also performed well, with the UAE maintaining its 10th-place ranking and Qatar and Bahrain each climbing two spots to No. 20 and No. 49, respectively, marking a rebound for the region after a softer showing in 2025.
The report indicates that the performance reflects sustained investment in proactive diplomacy, economic diversification and expanded initiatives across culture, tourism and sports.
It also comes at a time when several Western powers are recording declines in their rankings, highlighting the growing influence of Gulf states.
“The UAE remains a clear regional leader, while Saudi Arabia and Qatar have strengthened their global positions through focused economic diplomacy and international engagement,” said Savio D’Souza, managing director for the Middle East and Africa, Brand Finance.
Saudi Arabia and the UAE either maintained or improved their rankings across all key pillars, including familiarity, reputation and influence.
The Kingdom recorded notable gains, with increases of 25 points in the People & Values pillar and 12 points in the Culture & Heritage pillar.
“Although perceptions across some markets remain mixed, renewed upward movement in the rankings suggests that targeted, long-term soft power strategies are beginning to pay off,” D’Souza said.
Globally, the US retained its top position despite recording the steepest overall decline in its score, followed by China in second place. Japan rose to third place, overtaking the UK, which ranked fourth, while Germany placed fifth.
Brand Finance defines “soft power” as a “nation’s ability to influence the preferences and behaviors of various actors in the international arena (states, corporations, communities, publics, etc.) through attraction and persuasion rather than coercion.”
Each nation is assessed across 55 individual metrics, producing an overall score out of 100 and a ranking from first to 193rd.
