French lawmakers approve $11.2 billion internet tax based on traffic usage, costs $0.65 per gigabyte of content accessed

On October 30, France's National Assembly approved a proposed tax that aims to levy charges based on the amount of internet data per gigabyte transmitted to French users. The decision, which adds the new law to the country's upcoming budget, was made despite opposition from the government and finance committee rapporteur. Introducing the amendment, socialist lawmaker Laurent Lhardit stated that content providers could pay €0.55, or roughly $0.62, for every gigabyte of content distributed to French users.

If enacted, the tax could generate around €10 billion ($11.2 billion) annually for the government. The proposal targets companies that generate significant internet traffic, such as Google, Meta, Netflix, Amazon, and Akamai. ISPs like Orange Free and Liad would collect quarterly data from content providers and submit it to France's tax administration.

The tax would impact global tech firms as they generate most of the data traffic reaching French subscribers. While opponents raise concerns about user privacy and potential negative effects on French businesses, proponents argue the costs would be relatively modest. Other European countries have already implemented digital service taxes based on revenue from digital activities.