Per-gigabyte tax passed by one vote: taxing the digital giants deserves better than an empty chamber

The facts

The vote came down to a single voice. According to the official record of the National Assembly, amendment no. 1358 to the 2027 finance bill, tabled by Socialist deputy Laurent Lhardit, was adopted on Friday 30 October by 11 votes to 10, with 35 deputies voting and 21 votes cast. An identical text had been rejected in the finance committee on 9 October, notes the website Télé Satellite et Numérique.

The measure creates a tax on producers of digital data. According to the text of the amendment, as detailed by PolitiqueMatin and Next, it would amount to 0.055 euro per gigabyte delivered to the subscribers of internet service providers in France. It would be payable by the company sending the data, not by the operator, and capped at 15% of turnover generated in France or 2% of worldwide turnover. Operators would measure the volumes and pass them on to the tax administration, under the supervision of Arcep. The technical details would be left to a decree.

The Socialists expect around 10 billion euros a year from it. The explanatory memorandum, quoted by Télé Satellite et Numérique, names Google, Meta, Amazon, Netflix and Akamai, which together would account for nearly half of the traffic measured by Arcep.

The positions

In the chamber, Laurent Lhardit defended a measure that would weigh first on the global digital giants, in the name of fairness towards businesses established in France. He described it as follows, according to the record:

technically, legally and fiscally robust — Laurent Lhardit, PS deputy

He maintains that it would respect net neutrality, since it is based on a volume measured at the entry point of the networks, and put its cost for the TF1 group at between 200,000 and 300,000 euros.

The budget's general rapporteur, Philippe Juvin, gave an unfavourable opinion: he fears that the large platforms, in a position of strength on their market, would pass the burden on to advertisers. The Minister for Public Accounts, David Amiel, also opposed it. He believes the scheme would require flow sensors, or measurement at the level of individual devices, and that half of the expected revenue, around 5 billion euros, would fall on smaller providers, notably French ones. He pointed out that tools already exist, such as the digital services tax and competition law, citing the 4.1 billion euro fine imposed on Google by the European Commission.

In the specialist press, the fear that costs will be passed on to subscribers dominates. Clubic considers a price increase possible but not automatic, since the platforms could also cut their margins. Télé Satellite et Numérique, based on its own simulation, estimates that a family of four who watch a lot of video could represent several hundred euros of tax a year, and notes that the text does not specify how the two caps interact.

The analysis

The starting point is right. The large platforms draw a considerable share of their value from the French market while declaring most of their profits elsewhere, and they place heavy demands on networks financed by others. Asking for a contribution from those who benefit most from this common good is tax fairness in its most classic form. France has already shown it can innovate in this field: Jacques Chirac had the solidarity levy on airline tickets adopted in 2006, which became an international model.

But a good cause does not make a good tax. Taxing volume rather than value means hitting public broadcasting, French platforms, video game publishers or educational uses in the same way as the dominant players. If the minister's estimate proves correct, half of the burden would not target the giants. And if the tax were passed on, as several observers fear, it would in effect become a consumption tax, heavier for large families and low-income households, for whom streaming is often an essential leisure activity. That would be the opposite of the stated goal.

Then there is the democratic question. According to Next, only 35 deputies took part in the vote. AFP describes a very sparsely attended sitting and disjointed debates. That a measure announced at 10 billion euros should be adopted by 11 votes to 10, against the advice of the general rapporteur and the government, does not reflect well on Parliament, whichever side prevails. The text is not final in any case: it must still pass the vote on the first part of the bill, then the Senate, which has a right-wing majority and where its adoption seems unlikely according to Next. AFP even considers an overall rejection of the text likely, and the government could resort to Article 49.3 without keeping this amendment.

Conclusion

It would be regrettable if the legitimate case against the tool were to sink the objective. France already has a digital services tax, and the European Union has shown that it knows how to sanction abuses by the large platforms. The soundest path lies there: a tax based on the value generated in France, carried at European level where possible so as not to expose our country alone to trade retaliation, rather than a volume tax adopted in a deserted chamber. The question put to the parliamentary groups is therefore simple: will they seek to turn this Friday vote into a lasting and fair reform, or will they settle for a symbol?

Article written with the help of artificial intelligence.