France debates a new tax on data transmitted to internet users, targeting major digital platforms and potentially impacting the digital advertising economy.
Amendment to 2027 finance bill passes
The National Assembly in France approved an amendment on October 30 aimed at introducing a tax on data transmitted to French internet users by content and application providers. The amendment, I-1358, was proposed by Laurent Lhardit and his group of deputies from the Socialists and Allies party.Vote results and opposition
The amendment passed with 11 votes in favor, 10 against, and 14 abstentions. It faced opposition from the general rapporteur of the budget and the government, who expressed concerns about its potential impact.Details of the proposed tax
The tax would charge 0.055 euros per gigabyte of data transmitted, with a cap at 15% of revenue generated in France or 2% of global revenue. Internet service providers would measure the data under administrative supervision.Estimated revenue and purpose
The amendment's authors estimate the tax could generate up to 10 billion euros annually. They argue that major digital platforms should contribute more to the infrastructure they use, citing data showing five major companies account for about half of internet traffic in France.Focus on major content providers
The measure targets content providers that generate large data volumes, including streaming platforms, social networks, and digital content providers. This could affect the digital advertising economy, as these companies often rely on advertising revenue.Concerns and future steps
The general rapporteur warned that the tax might burden advertisers, and the government expressed concerns for French companies. The tax is not yet finalized and will depend on further examination of the 2027 finance bill and the final adoption of the law.
