The vote came despite opposition from the government side and the finance committee rapporteur, who had previously refused to recommend the revenue section of the budget. Unlike previous digital taxes that target advertising revenue or profits, this levy is based on traffic volume. Lhardit stated, “This amendment proposes a tax on digital data flows emitted by content providers, to be borne by the providers themselves.” The proposal distinguishes itself from Europe’s broader “network fair share” debates by directing revenue to the state budget rather than to telecom operators, shifting the rationale from infrastructure funding to general revenue raising.
The tax structure includes liability caps, limiting a company’s exposure to the maximum of 15% of its French revenue or 2% of its global revenue. For high-volume providers, this cap significantly reduces the theoretical cost of the per-gigabyte rate. For example, a 218 GB download would generate approximately €12 in theoretical tax liability, though actual payments for large firms would be governed by the revenue caps. Critics argue the structure is a blunt instrument, as it treats revenue-generating sales identically to free updates, patches, or failed download retries. Smaller platforms and indie distributors may face disproportionate impacts compared to hyperscalers, which have greater pricing power to absorb or offset the cost.
The amendment faces a narrow path to becoming law. It must survive the remaining stages of France’s budget process, where it can be amended or dropped entirely. The Assembly is scheduled to vote on the first part of the 2027 budget in early November; if that section is rejected, the amendment falls with it. Additionally, if the Assembly fails to complete its first reading within the 40-day constitutional window, the text may move to the Senate in its current state, preserving the controversial provisions. Internet service providers, such as Orange, Free, and Liad, would be required to measure and report the data traffic, adding a compliance burden to the telecommunications sector.
Market analysts note that no immediate pricing adjustments have been confirmed by major platforms. While the levy could influence future pricing strategies or default video bitrates in France, the measure remains a proposal subject to further parliamentary scrutiny. The outcome remains uncertain, with observers citing the political risk of enacting a revenue levy that targets specific US tech giants without compensating the telecom operators who bear the reporting costs.
