Tech giants call for France to ditch digital services tax

US tech giants are ramping up their resistance to France’s plans for a digital services tax.

On Monday, senior executives from Amazon, Google and Facebook spoke at a hearing in Washington to outline the impact a French levy could have on their European businesses, urging Paris to withdraw the plans.

Jennifer McCloskey, vice-president for policy lobby group the Information Technology Industry Council, said: “Today’s hearing is about more than the French digital services tax. It is about preventing widescale application of unilateral excise taxes.”

President Donald Trump has threatened to retaliate to the plans with tariffs on French products, including wine. The office of US trade representative called the hearing into France’s tax as part of a section 301 investigation aimed at assessing whether it constitutes a trade practice that hurts the US.

France pushed ahead with plans for a domestic tax on tech giant revenues after Europe-wide efforts to formulate a policy faltered.

France’s legislation, passed in July, would levy a three per cent tax on the revenue of tech titans such a Google and Facebook, with an estimated return to the government of €500 million per year. It will apply to companies with global revenue above €750 million, of which €25 million is made in France.

The UK has also forged ahead with unilateral plans for a tax that would be aimed at “large multi-national enterprises” which make more than £500 million in global revenues from digital activities, with more than £25 million of that deriving from UK users.

    Share Story:

Recent Stories


The future-ready CFO: Driving strategic growth and innovation
This National Technology News webinar sponsored by Sage will explore how CFOs can leverage their unique blend of financial acumen, technological savvy, and strategic mindset to foster cross-functional collaboration and shape overall company direction. Attendees will gain insights into breaking down operational silos, aligning goals across departments like IT, operations, HR, and marketing, and utilising technology to enable real-time data sharing and visibility.

The corporate roadmap to payment excellence: Keeping pace with emerging trends to maximise growth opportunities
In today's rapidly evolving finance and accounting landscape, one of the biggest challenges organisations face is attracting and retaining top talent. As automation and AI revolutionise the profession, finance teams require new skillsets centred on analysis, collaboration, and strategic thinking to drive sustainable competitive advantage.