French lawmakers approve $11.2 billion internet tax based on data traffic

French lawmakers have approved a proposed tax on internet data traffic sent to users in France, a measure that could charge content providers about €0.055, roughly $0.06, for every gigabyte delivered to French subscribers. The National Assembly voted 11-10 on October 30 to add the amendment to the country's next budget, with supporters estimating annual revenue of about €10 billion, or $11.2 billion. The proposal still must survive further parliamentary scrutiny before it can become law.

How the proposed levy would work

The amendment, introduced by socialist lawmaker Laurent Lhardit, would apply to companies that generate substantial internet traffic rather than taxing advertising revenue, profits or subscriptions. Internet service providers, including Orange Free and Liad, would measure the volume of data and identify companies responsible for sending it to French users. The data would be collected and submitted quarterly to France's tax administration under the supervision of telecommunications watchdog Arcep.

The proposal also includes a cap of 15% of a company's French revenue or 2% of its worldwide revenue. It accounts for content delivery networks, which store copies of online content closer to users to reduce loading times and network congestion.

Companies in the crosshairs

The explanatory notes mention Google, Meta, Netflix, Amazon and content delivery network Akamai as major potential contributors. TikTok and similar platforms could also fall under the broader scope depending on how the rules are applied. 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.

Debate and next steps

Lhardit argued the tax would primarily affect global technology companies because they generate most data traffic reaching French subscribers. He also disputed claims that platforms would simply pass costs to users, citing Facebook, Instagram and TikTok as free services. Opponents argue the proposal could endanger user privacy and create complicated monitoring requirements, while also raising concerns for French business. The amendment's adoption is only the first step; if it clears the remaining stages of France's 2027 budget process, it can become law, with parliament scheduled to vote on the budget's first section in early November.

Sources: Tom's Hardware