France Approves $11.2 Billion Internet Tax

French lawmakers have approved a proposed tax on internet data, which aims to generate $11.2 billion in annual revenue by charging content providers $0.62 per gigabyte of content distributed to French users. The French National Assembly voted 11-10 in support of the internet tax motion on October 30.

The proposed tax was introduced by socialist lawmaker Laurent Lhardit and targets companies that generate substantial internet traffic, including Google, Meta, Netflix, Amazon, and Akamai. Internet service providers would be required to measure the volume of data and identify the 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 includes a cap of 15% of a company’s French revenue or 2% of its worldwide revenue.

Approximately 154 million users are in France, and around 200 billion GB of data pass through French internet providers annually. The tax would apply to companies that distribute content to these users, with the goal of generating significant revenue for the government.

## Why it matters The approval of the internet tax has significant implications for the tech industry and internet users in France. The tax could lead to increased costs for content providers, which may be passed on to consumers. The French government hopes to generate $11.2 billion in annual revenue from the tax, which would be a significant boost to its budget.

The tax also raises questions about the impact on internet freedom and access to online content. With major companies like Google and Netflix affected, the tax could lead to changes in the way they operate in France. The proposal must still survive further parliamentary scrutiny before it becomes law, but its approval marks a significant step towards regulating the tech industry in France.