France has passed its new Big Tech tax—and the US is not happy
The French parliament has just approved a 3% digital sales tax aimed at closing the loopholes big tech companies use to bring down their tax bills.
The plan: The tax on sales generated in France will apply to companies with global revenues over €750 million ($849 million) or French revenues over €25 million. It is expected to raise about €500 million a year.
A backlash: Inevitably, most of the companies affected are based in the US. It’s for that reason that the US government has ordered an inquiry into the new tax, with the potential to implement tariffs on French goods in retaliation.
First of many: The low tax yield from wealthy global tech firms is controversial far beyond France. The UK, Spain, Italy, and Austria are considering similar sales taxes, raising the question of how the US will respond if they take effect. Perhaps it might even prompt countries to finally agree on some common tax rules (imagine that).
Sign up here to our daily newsletter The Download to get your dose of the latest must-read news from the world of emerging tech.
Keep Reading
Most Popular
Geoffrey Hinton tells us why he’s now scared of the tech he helped build
“I have suddenly switched my views on whether these things are going to be more intelligent than us.”
Deep learning pioneer Geoffrey Hinton has quit Google
Hinton will be speaking at EmTech Digital on Wednesday.
Video: Geoffrey Hinton talks about the “existential threat” of AI
Watch Hinton speak with Will Douglas Heaven, MIT Technology Review’s senior editor for AI, at EmTech Digital.
Doctors have performed brain surgery on a fetus in one of the first operations of its kind
A baby girl who developed a life-threatening brain condition was successfully treated before she was born—and is now a healthy seven-week-old.
Stay connected
Get the latest updates from
MIT Technology Review
Discover special offers, top stories, upcoming events, and more.