France’s National Assembly has narrowly approved a proposal to charge content providers €0.055 for every gigabyte of data they send to internet users in the country. The measure was added to the draft 2027 budget in a first-reading vote on October 30, passing 11 votes to 10, with 14 abstentions.
The proposal is not yet law. It must pass further stages of the budget process, and it could still be changed or dropped.
How the Proposed Tax Would Work
The levy would apply to companies that deliver online content and services, rather than being charged directly to internet users. The proposal names major digital firms such as Google, Meta, Amazon, Netflix and content-delivery provider Akamai among the companies likely to be affected.
Internet service providers would measure the volume of data sent to their customers and identify the companies responsible. The information would be reported to tax authorities every quarter, under the supervision of France’s telecom regulator. The proposal says the system would track data volumes, not the content people access.
The tax would be subject to limits: liability could not exceed 15 per cent of a company’s revenue in France or 2 per cent of its global revenue.
Supporters Expect Billions in Revenue
The proposal’s authors estimate that the levy could raise around €10 billion annually. They argue that global technology companies benefit from French users and digital infrastructure while their profits can be booked across different countries.
They say taxing data flows would provide a way to capture some of that economic activity within France. The proposal also aims to encourage providers to use data more efficiently.
Government and Industry Raise Concerns
The French government and the finance committee opposed the amendment. Critics questioned whether internet traffic could be measured and attributed accurately without costly monitoring systems. They also warned that smaller content providers, including French businesses, could face a substantial share of the burden.
Another concern is that large platforms might pass the cost on to advertisers, which could affect businesses that rely on online advertising. The proposal has also drawn criticism from VideoLAN, the nonprofit behind VLC media player, which says the tax could create a significant expense for the organisation.
Next Steps Remain Uncertain
The measure still faces further scrutiny as France considers its 2027 budget. The Senate could reject or amend it, and the government may use budget procedures that leave the proposal out of the final text.
For now, the vote signals support among some lawmakers for taxing internet traffic at the provider level. But the proposal’s future—and whether it would change prices or services for users—remains uncertain.
