France Considers New Tax on Internet Traffic

A New Initiative for Digital Traffic

The French National Assembly has passed a controversial proposal that would see the government tax internet traffic. Part of the upcoming national budget, the bill aims to collect revenue from major technology companies based on the volume of data they transmit to French users. The initiative’s author, socialist lawmaker Laurent Lardit, estimates the measure could generate approximately €10 billion ($11.2 billion) in annual revenue for the state budget.

Taxation Mechanism and Targeted Companies

Under the proposed regulation, content providers would be required to pay a fee of €0.55 (approximately $0.62) for every gigabyte transmitted. The bill targets industry giants including Google, Meta, Netflix, Amazon, and Akamai. Tax calculations would be based on data measurements provided by internet service providers, which would be submitted quarterly to tax authorities. The process will be overseen by Arcep, France’s telecommunications regulator.

The bill includes a cap on the tax, stipulating it must not exceed 15% of a company’s revenue generated in France or 2% of its global revenue. Lardit maintains that the tax will not impact ordinary users, as it specifically targets platforms offering free services to the public, such as Facebook, Instagram, and TikTok.

Criticism and Future Prospects

Although the initiative has passed in parliament, it has faced significant opposition from within the government. Critics, including minister David Amiel, fear that such detailed traffic monitoring could compromise user privacy and create unnecessary bureaucratic hurdles. Furthermore, there are concerns that this fiscal policy could negatively impact the French business environment.

While taxing digital services is not new in Europe, previous measures have primarily focused on advertising revenue. France’s move to link taxation directly to traffic could set a precedent for other European nations. The bill is still undergoing parliamentary review, with its final fate to be decided during the budget vote scheduled for early November. For observers in Georgia, this development is significant; strict European regulations on tech giants often trigger global shifts that eventually influence services available in our own market.