Few people know it, but your smartphone makes you pay a fee for a service you never use

by time news

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​ ‍ This fee can⁤ go up‌ to a certain amount when you purchase your phone, ‌new or refurbished. ⁤

A new smartphone ​can quickly become expensive. The latest and most advanced models ⁤far exceed the minimum wage amount in ⁣France and some devices can even reach 2000​ euros if you add some ‌storage or RAM options. This is ⁢why⁣ many French people turn to simpler and ⁣cheaper devices.‍ However, if we compare the price⁣ of a device sold in France with‌ its price on American soil, we immediately‌ notice a fairly large difference since a smartphone costs more here.

At issue: the various European and French taxes⁢ that can be imposed on an imported product. However, these⁤ taxes do not only have negative sides as they ⁢encourage consumers to purchase from brands‌ domiciled in France or with‌ stores physically present in the country. However,⁣ there is a tax ⁤that many smartphone owners are ⁢not aware of and which concerns a service that very few people use.

Few people know it, but your smartphone makes you pay a fee for a service you never use

Called a‌ “private ⁢copyright tax,” the latter is not actually a tax, but a remuneration offered⁣ to ‌authors,‍ publishers, artists and ⁣music producers. They are collected by manufacturers of storage devices such as USB keys, external hard ⁣drives and… smartphones.⁣ Its⁤ principle: take a ⁤portion ‌of the price of your device to donate it ​to artists to offset the⁤ fact that you can store music on ⁢your product.

Concretely, since your phone is capable of storing MP3 files, it is subject to⁤ private⁤ royalties and its purchase is accompanied by a portion donated to the artists. ‌However, ⁢according to several studies ⁣conducted in France, very few smartphone owners still store music locally on their​ device. The vast majority now take advantage of video or music streaming applications and sites like YouTube or Spotify to⁤ listen ​to music. A solution often considered faster and more practical, and which‍ takes‌ only a few seconds to find ‌your favourite music.

Downloading and storing MP3 files generally takes ‌longer to set⁤ up and is often illegal unless ⁤you go through an official distributor‌ and pay ​download royalties. The topic of private copyright tax is regularly addressed in public debate and at government‌ level. Several ⁣actors in the field⁣ have already tried to ⁢put​ an end‌ to it, calling it ‌”useless” ⁤or “stupid”. However, it represents just over 10 ‌euros on the total purchase price⁢ of a smartphone.

The icing on the cake: this tax applies to new smartphones, but also to refurbished ones that have ⁢already been subject to this same⁢ tax upon their‌ first sale as new devices! You are therefore paying double⁤ the same remuneration for a service ‍that you probably don’t ​even⁣ use.

Interview ⁢Between ‌Time.news Editor and Smartphone Industry Expert

Time.news Editor: ‍ Welcome to our interview today! We have with us Dr. Lucie Moreau, a‌ leading expert in‌ the ‌smartphone industry and technology ​policy. Thank you for joining us, Dr. Moreau!

Dr. Lucie Moreau: Thank you for having ‍me! I’m excited to discuss these​ important ⁣issues surrounding smartphone pricing and taxes in Europe.

Time.news ​Editor: Let’s dive right in. It seems many consumers are ⁣taken aback when they see the extensive prices for​ smartphones in⁣ France compared to‌ the US. What⁢ are the‌ main factors contributing to this price difference?

Dr. Lucie⁢ Moreau: Absolutely, it’s quite remarkable. The ‍primary ⁢factors are indeed various ⁣taxes and tariffs imposed on imported products. In France, the price includes ⁣not only VAT but also specific taxes⁣ that aim to support local economies and industries. This means many smartphones can cost significantly more ⁢in France than in the US, ⁣where prices ‌may seem lower due to different tax structures.

Time.news Editor: ⁤ That’s fascinating. You mentioned these specific taxes, and one ⁢that caught my attention was the‍ so-called “private copyright tax.” ‍Can you ⁣explain what that entails?

Dr. ⁤Lucie Moreau: ‌Certainly! The “private copyright tax” ​is often misunderstood. While it might⁣ sound like a typical‍ tax, it actually serves as⁢ a remuneration for authors, artists, and content creators. Manufacturers of storage devices, including smartphones,⁣ are required⁤ to collect fees ‍intended to compensate these creators for the copying and‍ distribution of their work. However, most consumers don’t utilize this service, making it a bit of an⁤ invisible cost on the price⁢ tag of their devices.

Time.news Editor: That raises ⁢an interesting point⁣ about consumer awareness. Why do you‌ think this fee‌ is generally overlooked by smartphone⁣ owners?

Dr. Lucie ‌Moreau: It’s largely due to the complexity of the pricing structure itself. Consumers see the total‌ amount when purchasing a device but often⁤ don’t⁣ delve into the ‌breakdown of costs. Additionally, the fee is typically included in the overall ⁢price‌ rather than being distinctly⁢ itemized, making⁣ it less visible and understandable for the average⁢ buyer.

Time.news Editor: So, in a way, this⁤ is a ⁢double-edged sword. On one ‍hand, these taxes encourage support for local artists,⁤ but⁣ on the⁢ other, they make technology less accessible. What are your ‌thoughts on⁤ how this might impact the‍ choice of smartphones among French consumers?

Dr. Lucie Moreau: Exactly. While supporting local creativity is ⁣essential, a high price tag can⁢ push consumers towards simpler, cheaper models or even second-hand options. It forces a⁢ demographic shift ⁤where people might opt for devices that don’t fully⁤ serve ⁤their needs, simply due to financial considerations. This ⁣could limit their access to the latest technology ​and innovation.

Time.news Editor: It sounds like a balance needs to be struck. What do ⁢you suggest as potential solutions to bridge this gap ‍between supporting local artists and making ⁢technology accessible?

Dr. ⁣Lucie Moreau: ⁢One approach could be to‌ offer clearer transparency‍ in ​pricing. Consumers should be ⁣informed about​ these costs ⁤upfront so‍ they can understand what they are contributing‌ towards. Additionally, tiered pricing models ⁣or subsidies⁢ for essential technology could be ‌explored to make high-quality ⁣devices more accessible while still supporting local creators.

Time.news Editor: Those ‌are insightful suggestions. As we move⁤ forward in an increasingly digital and⁤ reliant age on technology, these discussions ⁤become ever more important. Thank you, Dr. Moreau, for sharing your expertise with us ⁢today!

Dr. Lucie Moreau: It was my pleasure! Thank you for‍ highlighting such relevant issues in our society. Let’s continue the conversation moving forward!

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