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French lawmakers approve $11.2 billion internet tax based on traffic usage, costs $0.06 per gigabyte of content accessed
France's proposed data levy could raise €10 billion annually from major content providers.
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France has approved a proposed tax that aims to tax the amount of internet data per gigabyte sent to French users in the country, with major companies like Google, Netflix, TikTok, and Meta now in the crosshairs. According to minutes released by the National Assembly, members voted 11-10 in support of the motion on October 30 — which now means the new law has been added to the country’s next budget, despite major opposition from the government side and the finance committee rapporteur. The latest amendment, introduced by socialist lawmaker Laurent Lhardit, could see content providers pay €0.055 (roughly $0.06) to the government for every gigabyte of content distributed to French users.
With approximately 154 million users and counting in France, the proposal’s authors say such a tax could generate around €10 billion ($11.2 billion) in annual revenue for the government. “This amendment proposes a tax on digital data flows emitted by content providers, to be borne by the providers themselves. Its revenue is estimated at €10 billion.” Said Laurent Lhardit. The said proposal, though yet to be passed as it must survive further parliamentary scrutiny, aims at companies that generate substantial internet traffic as opposed to taxing their advertising revenue, profits and subscriptions. Its explanatory notes particularly mention Google, Meta, Netflix, Amazon, and content delivery network Akamai as major potential contributors. Notably, TikTok and other similar platforms could fall under this broader scope depending on how these rules are applied.
Internet service providers, including Orange Free and Liad, would be required to measure the volume of data and identify the companies responsible for sending it to French users. The Data will then be collected and submitted quarterly to France’s tax administration under the supervision of telecommunications watchdog Arcep. Aside from the €0.055 per gigabyte levy, the proposal also includes a cap of 15% of a company’s French revenue or 2% of its worldwide revenue. It also accounts for content delivery networks (CDNs), which store copies of online content closer to users to reduce loading times and network congestion.
Approximately 200 billion GB of data pass through French internet providers annually, with about five major companies identified in the amendment accounting for about half of that traffic. Lhardit argued that tax would primarily affect global technology companies because they generate most of the data traffic reaching French subscribers. He also disputed that those platforms would merely push additional costs to users, using Facebook, Instagram, and TikTok, which provide free access, as examples. “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,” He stated.
Lawmakers opposed to the proposal, however, argue that it is likely to endanger user privacy. Government Minister David Amiel questioned whether the internet traffic could be measured and attributed to content providers without introducing complicated monitoring requirements. Those concerns extend to potential consequences for French business. Lhardit, however, noted that businesses would pay relatively modest costs, citing TF1 as an example, which requires broadcasters to contribute between €200,000 and €300,000.
Several European countries already impose digital service taxes, generally based on revenue from Ads, marketplaces and other digital activities. In March, Meta announced it would introduce location-based fees of between 2% and 55 for advertisers to offset digital services taxes and other government levies in several countries, including France, Italy, and Spain, from July