The Finance Committee of the French National Assembly is cracking down on tech giants such as Google, Amazon, Apple, and Microsoft. These companies will be taxed at a rate of 15%, up from 3% previously, if the finance bill is approved.
GAFA in the crosshairs of the Finance Committee
Where can the tens of billions of euros missing from France’s budget be found? Partly among the American tech giants, according to the Finance Committee of the National Assembly. The committee has just approved a 15% tax targeting large companies based across the Atlantic.
The “GAFA tax” was already 3%, but the aim is to raise it significantly in order to tax advertising activities and revenue generated in France. Only companies with global revenues exceeding €2 billion are affected. This effectively excludes large French companies that generate hundreds of millions of euros, but not enough to be affected by this tax.
In total, fewer than 30 companies are affected, but the list includes all the tech giants: Google, Amazon, Apple, Microsoft, and Meta. As a reminder, these companies had already balked at the introduction of the 3% tax, which had been largely redistributed to consumers.
A response to customs duties
For Denis Masséglia, a Renaissance MP who proposed a similar amendment, the tax serves to bring euros into the state coffers, but it is also a “reciprocity strategy” in response to Donald Trump’s customs duties.
While the Zuckman tax proposal has received strong popular support in France, this type of tax seems to be part of a broader trend. However, it has not yet been adopted: for that to happen, the 2026 budget will have to pass before the National Assembly and the Senate.
However, the political situation, which has been particularly tense this fall, does not suggest that debates on this subject will be calm. The new Prime Minister aims to finalize it before December 2025, but the road ahead will be rough.
