French lawmakers just voted for a digital services tax that takes aim at two dozen large tech companies, including several high-profile U.S. brands. The move caused bipartisan dismay in Washington, and the White House has threatened retaliatory tariffs. But more countries could soon follow France’s lead.
On July 11, France’s Senate passed what’s come to be known as the “GAFA tax”—so called because it is seemingly designed to target Google, Apple, Facebook, and Amazon. It slaps a 3 percent tax on revenues earned by digital services firms that have total yearly revenues of more than $845 million and yearly sales in France of more than $28 million.
Few such French companies exist, leading to U.S. complaints of unfair treatment.