French lawmakers have approved a controversial amendment to the national budget that imposes a new tax on internet data traffic. The measure, which adds approximately $11.2 billion to the state treasury, targets major technology companies based on the volume of content they deliver to French users. The National Assembly voted 11-10 in favor of the motion on October 30, despite strong opposition from the government and the finance committee.
Per-Gigabyte Levy Targets Major Platforms
The amendment, introduced by socialist lawmaker Laurent Lhardit, establishes a fee of 0.055 euros, or roughly $0.06, for every gigabyte of data sent to subscribers in France. Proponents estimate that approximately 200 billion gigabytes of data pass through French internet infrastructure annually. Under this model, the tax could generate 10 billion euros each year. The explanatory notes for the proposal specifically name Google, Meta, Netflix, Amazon, and content delivery network Akamai as primary contributors. TikTok and other similar platforms may also fall under the scope depending on final regulatory application.
Lhardit argued that the tax targets global technology companies because they generate the majority of data traffic reaching French subscribers. He disputed claims that the cost would be passed on to consumers, noting that platforms like Facebook, Instagram, and TikTok offer free services. “The rapporteur keeps arguing that the taxes will be passed on to consumers. However, I fail to see how a tax can be passed on to users of Facebook, Instagram, or TikTok since these services are free,” Lhardit stated.
Implementation and Privacy Concerns
Internet service providers, including Orange and Free, will be responsible for measuring data volumes and identifying the companies sending content to French users. This data must be submitted quarterly to the tax administration under the supervision of Arcep, the national telecommunications watchdog. The proposal includes a cap limiting the levy to 15% of a company’s French revenue or 2% of its worldwide revenue. It also accounts for content delivery networks that store copies of online content closer to users to reduce loading times.
Opponents of the measure raised significant concerns regarding user privacy and technical feasibility. Government Minister David Amiel questioned whether internet traffic could be accurately measured and attributed to specific content providers without introducing complex monitoring requirements. Critics argue that such tracking could infringe on digital privacy rights. Lhardit countered that businesses would face relatively modest costs, citing broadcaster TF1 as an example, which would contribute between 200,000 and 300,000 euros.
This development follows a broader trend in Europe, where several countries have already imposed digital service taxes based on advertising revenue and market activities. In March, Meta announced it would introduce location-based fees for advertisers in France, Italy, and Spain to offset such levies. The European Commission has also enforced major penalties against tech firms, including a 5 billion euro fine against Google for Android antitrust violations and fines against Facebook for misleading regulators. Last year, Apple and Meta were fined 500 million and 200 million euros respectively, actions that strained relations between Brussels and Washington.
The amendment must now survive further parliamentary scrutiny to become law. If it clears the remaining stages of the 2027 budget process, parliament is scheduled to vote on the first section of the budget in early November.
Source: Tom’s Hardware
