5.5 cents per gigabyte: France's Parliament votes for data tax
French lawmakers are discussing a new way to replenish the budget through digital traffic. The National Assembly has accepted a proposal from the Socialist Party to introduce a data transfer tax, set at 5.5 cents per gigabyte.
The initiative, proposed by the Socialist Party, aims to fill France's state coffers. Such a measure is estimated to bring in approximately €10 billion. The primary targets for taxation are major tech companies responsible for more than half of France's internet traffic, specifically naming Google, Meta, Amazon, Netflix, and Akamai.
Cost per gigabyte and risks for users
To grasp the potential scale of these costs, consider modern gaming. If GTA 6 reaches an expected size of 210 GB, each download in France would cost the publisher (such as Rockstar Games) €11.55 under this tax. While the tax is officially intended to be paid by the data provider rather than the end user, there are concerns that companies might pass these costs onto consumers through higher subscription or purchase prices.
The collection mechanism involves anonymous transactions through internet service providers. A cap has been proposed for total payments: no more than 15% of revenue in France or 2% of global turnover. However, the lack of exemptions for Open Source projects has already sparked backlash. For instance, VideoLAN, the non-profit behind the VLC media player, stated that without concessions for non-profit organizations, such projects could face a tax burden of around €1 million per year.
Uncertainty and criticism
Despite the amendment's passage, its implementation remains highly uncertain. The vote saw extremely low turnout, with only 35 out of 537 deputies present, and the motion passed by a narrow margin of 11 to 10. Given the opposition from both the government and the conservative majority, the initiative is unlikely to secure a majority in a second vote or in the Senate.
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