French lawmakers advance plan to double digital services tax on Big Tech

France’s National Assembly has voted to raise its digital services tax on major tech firms such as Google, Apple, Meta and Amazon from 3% to 6%, despite government warnings that the move could trigger US trade retaliation.

Economy Minister Roland Lescure said the increase would be ‘disproportionate’, cautioning that it could invite equally strong countermeasures from Washington. Lawmakers had initially proposed a 15% levy in response to former US President Donald Trump’s tariff threats, but scaled back amid opposition from industry and the government.

The amendment still requires final approval in next week’s budget vote and then in the French Senate. The proposal also raises the global revenue threshold for companies subject to the digital services tax from €750 million to €2 billion, aiming to shield smaller domestic firms.

John Murphy of the US Chamber of Commerce criticised the plan, arguing it solely targets American companies. Lawmaker Charles Sitzenstuhl, from President Emmanuel Macron’s party, stressed that ‘the objective of this tax was not to harm the United States in any way’, addressing US officials following the vote.

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