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French Lawmakers Approve $11.2 Billion Internet Tax Based on Data Usage
Key points
- French lawmakers approved a new internet tax proposal.
- Content providers would pay $0.06 per gigabyte of data.
- The tax could generate $11.2 billion annually.
- Targets companies like Google, Netflix, Meta, and TikTok.
- ISPs would measure data and report to tax administration.
New Internet Tax Approved in France
French lawmakers have approved a new tax proposal targeting internet data usage. The motion passed with an 11-10 vote on October 30 and has been added to the country's upcoming budget. This amendment, introduced by socialist lawmaker Laurent Lhardit, proposes a charge of €0.055 (approximately $0.06) for every gigabyte of content distributed to French users by content providers.
Revenue Projections and Targeted Companies
The authors of the proposal estimate that this tax could generate around €10 billion ($11.2 billion) in annual revenue for the French government. The tax aims at companies that generate substantial internet traffic, rather than focusing on advertising revenue, profits, or subscriptions. Specific companies mentioned as potential contributors include Google, Meta, Netflix, Amazon, and Akamai, with TikTok and similar platforms also potentially falling under its scope.
Implementation and Oversight
Internet service providers (ISPs) such as Orange Free and Liad would be responsible for measuring the volume of data and identifying the companies sending it to French users. This data would then be collected and submitted quarterly to France's tax administration, under the supervision of the telecommunications watchdog Arcep. The proposal also includes a cap for the tax, limiting it to 15% of a company's French revenue or 2% of its worldwide revenue, and accounts for content delivery networks (CDNs).
Rationale Behind the Tax
Approximately 200 billion GB of data pass through French internet providers annually, with about half of that traffic attributed to the five major companies identified in the amendment. Laurent Lhardit argued that this tax would primarily affect global technology companies due to their significant contribution to data traffic.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
French lawmakers approved a new tax proposal that would charge content providers approximately $0.06 per gigabyte of data distributed to French users. This tax, estimated to generate $11.2 billion annually, targets major internet companies like Google, Netflix, and Meta based on their traffic volume rather than advertising revenue or subscriptions.