French lawmakers pass data tax amendment

French deputies approved an amendment to the 2027 finance bill that would impose a tax on digital content providers based on the amount of data they send to French internet users. The tax would charge 0.055 euros per gigabyte of data, aiming to raise up to 10 billion euros annually, according to estimates from the telecom regulator Arcep.

Tax targets major tech companies

The amendment would primarily affect large international tech firms like Google, Meta, Amazon, Netflix, and Akamai, which together account for half of the data traffic recorded in France. Internet service providers would be responsible for measuring and reporting the data sent to users, with the information to be submitted quarterly to the Direction générale des finances publiques (DGFiP).

Supporters highlight environmental and economic goals

Supporters of the tax argue it could reduce data usage, which may help the environment by encouraging more efficient data transmission. However, critics, including Public Accounts Minister David Amiel, warn that the tax could unfairly burden smaller content providers, including some French companies, and may lead to higher costs for consumers.

Amendment includes revenue caps

The amendment includes a cap to prevent excessive financial pressure on companies, limiting the tax to 15% of a company’s revenue generated in France or 2% of its global revenue. However, the tax could still result in higher prices or reduced service quality if companies pass on the costs to consumers.

Senate and government may block the measure

The amendment is not yet law and must be approved by the Senate, which is expected to oppose it. The government has also signaled it may bypass the parliamentary process using Article 49.3 to finalize the budget without including the amendment. If the budget is rejected, the original text would be sent to the Senate for consideration.

Other financial reforms approved

In addition to the data tax, deputies approved several other financial measures, including a 5% tax on superdividends, a 10% tax on share buybacks by CAC40 companies, and a proposal for a 50 billion euro national loan from individuals. The "Pacte Papin" was also adopted to support employee takeovers of small and medium enterprises (SMEs), alongside changes to tax benefits for capital gains.