Washington – The Computer & Communications Industry Association is deeply concerned with a recent French National Assembly’s proposal to double France’s discriminatory digital services tax (DST) from 3 percent to 6 percent. These concerns build on CCIA’s longstanding opposition to such measures, both in France and elsewhere. This latest move, coupled with raising the global revenue threshold from €750 million to €2 billion, is a targeted measure against U.S. firms that amplifies the DST’s already discriminatory design and intent.
These proposed changes would further scope out European and Chinese competitors while increasing the burden on U.S. firms. The financial impact is staggering: In 2024, France is estimated to have collected $844 million from this tax, mostly from U.S. companies; doubling the rate and raising the threshold would likely raise the annual toll to over $1.7 billion, further concentrated on U.S. firms.
The amendment’s own text confirms this discriminatory intent, naming US firms exclusively and citing a “response to the tariffs imposed by the U.S.” and “digital sovereignty.” This action harms U.S. competitiveness and sets a dangerous precedent. If not opposed, it will encourage countries like Türkiye and Poland to expand or enact similar unilateral measures, further eroding the U.S. tax base.CCIA urges U.S. policy leaders to push back against such discriminatory measures and revisit outstanding Section 301 investigations into DSTs in France and other nations. For more information on the proposed DST and its potential impact, see here.
