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.
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!