France’s National Assembly has narrowly approved a proposed tax of €0.055 (5.5 euro cents) for every gigabyte of data delivered to internet users in the country. The measure, adopted on October 30, 2026, through an amendment to the 2027 budget bill, could affect major digital companies including Netflix, Google, Meta, Amazon and content-delivery provider Akamai.
The amendment passed by just one vote, with 11 lawmakers voting in favour and 10 against, despite opposition from the French government and the budget’s rapporteur. The proposed levy would be paid by content providers rather than directly by internet subscribers. However, companies could potentially pass some of the additional cost on through higher subscription prices or changes to their services. The tax is not yet law and must clear further budget and parliamentary stages.
Key Takeaways
- France’s National Assembly approved a proposed tax of €0.055 per gigabyte of data delivered to French internet users.
- The amendment passed on October 30, 2026, by 11 votes to 10, with 14 abstentions.
- Netflix, Google, Meta, Amazon and Akamai are among the companies likely to be affected.
- Internet service providers would measure data volumes and report them to the tax authorities every quarter.
- The proposed tax would be capped at 15% of a company’s French revenue or 2% of its global revenue.
- Supporters estimate that the levy could generate approximately €10 billion annually.
- Critics warn that streaming subscriptions, gaming downloads and cloud services could become more expensive.
- The measure still needs to survive the remaining legislative process for France’s 2027 budget.
France Approves a 5.5-Cent Tax Per Gigabyte
The French National Assembly adopted amendment I-1358 to the country’s 2027 budget bill on October 30.
Introduced by Socialist deputy Laurent Lhardit, the amendment proposes a tax on digital data producers based on the volume of information they send to internet users in France.
The proposal received 11 votes in favour and 10 against. It had previously faced opposition in the National Assembly’s Finance Committee and received unfavourable opinions from the government and the budget’s rapporteur.
The proposed tax would apply at a rate of €0.055 for every gigabyte transmitted.
| Particulars | Proposed provision |
|---|---|
| Tax rate | €0.055 per GB |
| Equivalent rate | 5.5 euro cents per GB |
| Legislative amendment | I-1358 |
| Introduced by | Laurent Lhardit |
| Assembly vote date | October 30, 2026 |
| Votes in favour | 11 |
| Votes against | 10 |
| Abstentions | 14 |
| Proposed annual revenue | Approximately €10 billion |
The proposal is different from a conventional digital services tax, which generally focuses on revenue generated by digital companies.
Instead, France’s proposed levy would be calculated according to the amount of data transmitted to users.
How Would the Proposed Gigabyte Tax Work?
Under the amendment, internet service providers would measure the volume of data delivered to their customers by individual content providers.
Telecom operators would collect consolidated and anonymised information about the data flows, identifying the company responsible for sending the data.
The information would be reported quarterly to France’s tax administration, under the supervision of the telecom regulator Arcep and the Directorate General of Public Finances.
The proposal also addresses content delivery networks (CDNs), which store copies of digital content closer to users to improve loading speeds and reduce network congestion.
For providers using these networks, the taxable data volume would be calculated using the combined outgoing data flows from the content delivery network.
The proposal says authorities would not be allowed to demand information about the actual content being transmitted or its individual destination.
Example: How Much Would the Tax Cost?
The proposed rate would create the following tax obligations before the applicable caps:
| Data transmitted | Proposed tax |
|---|---|
| 1 GB | €0.055 |
| 10 GB | €0.55 |
| 50 GB | €2.75 |
| 100 GB | €5.50 |
| 500 GB | €27.50 |
| 1,000 GB (1 TB) | €55 |
| 10,000 GB (10 TB) | €550 |
| 1 million GB (1 PB) | €55,000 |
For example, a platform delivering 100 million GB of data to French users would face a theoretical levy of €5.5 million before the statutory cap.
Netflix, Google, Meta and Amazon Could Face Higher Costs
The proposal specifically focuses on large digital companies that account for a significant share of internet traffic in France.
The amendment identifies five major companies:
- Google: Search, YouTube and other digital services.
- Meta: Facebook, Instagram and other social platforms.
- Amazon: Prime Video and other digital services.
- Netflix: Video streaming and entertainment.
- Akamai: Content delivery and internet infrastructure services.
According to the traffic estimates cited by the amendment, these five companies account for approximately half of the data traffic measured in France.
However, the proposed tax is not restricted to these companies.
Other content providers, including gaming platforms, cloud storage services, software distributors and digital content platforms, could also fall within its scope depending on how the final rules define taxable data providers.
This means the potential impact could extend beyond video streaming.
France Expects Around €10 Billion in Annual Tax Revenue
Supporters of the amendment estimate that the proposed tax could generate approximately €10 billion annually.
Their calculation is based on an estimate from Arcep that around 200 billion GB of data is transmitted to internet subscribers in France every year.
Applying the proposed rate of €0.055 per GB produces a theoretical amount of approximately €11 billion before statutory caps and other adjustments.
| Calculation | Amount |
|---|---|
| Estimated annual data traffic | 200 billion GB |
| Tax per GB | €0.055 |
| Theoretical tax before caps | €11 billion |
| Supporters’ estimated annual revenue | Approximately €10 billion |
These figures represent the proposal’s estimated revenue potential, not a confirmed government revenue forecast.
The actual amount collected would depend on which companies qualify as taxable providers, how data volumes are measured and how the revenue caps are applied.
Tax Caps Would Limit the Liability of Digital Companies
The amendment includes limits intended to prevent the tax from becoming disproportionately large for individual companies.
The proposed liability would be capped at 15% of the provider’s revenue generated in France or 2% of its global revenue.
These limits are important because the tax is based on data volumes rather than the profitability or revenue generated by individual services.
For example, a platform that distributes large amounts of free content could transmit substantial volumes of data without earning equivalent revenue from French users.
The caps are designed to limit the potential burden, although the final financial impact would vary between companies.
Could Netflix and Other Platforms Increase Subscription Prices?
One of the biggest questions surrounding the proposal is whether digital companies could transfer the additional costs to consumers.
The amendment would make content providers responsible for paying the tax. It would not directly impose a new charge on households or require telecom operators to increase internet bills.
However, companies could respond to higher costs in several ways:
- Absorb the additional tax and accept lower margins.
- Increase subscription prices in France.
- Introduce different pricing structures for French customers.
- Reduce data consumption through greater compression.
- Change streaming quality or other service features.
For example, a streaming platform could consider increasing subscription prices to recover some of the additional expense.
Gaming companies and cloud providers could also reconsider the pricing of large downloads and data-intensive services.
None of these changes is automatic or required by the proposed amendment. They would be commercial decisions made by the affected companies.
Why Does France Want to Tax Digital Data Traffic?
Supporters argue that major international digital companies benefit from France’s telecommunications infrastructure and should contribute more towards its costs and public finances.
Digital platforms depend on extensive broadband and mobile networks to distribute video, social media content, software, games and cloud services.
The proposal’s supporters believe that companies responsible for generating substantial network traffic should contribute financially to the infrastructure that makes their services possible.
They also argue that taxing data volumes could encourage digital companies to improve compression technology and reduce unnecessary data transmission.
This could potentially reduce network congestion and energy consumption associated with transmitting large volumes of information.
However, critics question whether the proposed rate accurately reflects the cost of transporting data and whether the measure would create unintended consequences for smaller French technology companies.
Government Opposition and Concerns Over Smaller Companies
The French government opposed the amendment, raising concerns about its practical and economic implications.
One concern is that a tax designed primarily to target large international platforms could also affect smaller domestic businesses that distribute digital content.
For example, French broadcasters, gaming companies, software providers and cloud services could face additional costs depending on the final scope of the measure.
Another concern involves implementation.
Internet service providers would need a reliable method to identify data volumes associated with individual content providers, including traffic delivered through content delivery networks.
The final technical arrangements would need to address how these volumes are measured, consolidated and reported without inspecting users’ communications.
Critics also warn that companies could pass the tax on to consumers through higher prices or reduced service quality.
The Tax Is Not Yet Final: What Happens Next?
The October 30 vote represents only one stage in France’s legislative process.
The amendment has been adopted by the National Assembly, but the wider 2027 budget bill must still pass through further parliamentary stages.
The proposal faces several hurdles:
- Remaining National Assembly proceedings: The Assembly must continue examining and voting on the relevant parts of the 2027 budget.
- Senate review: The upper house can reject, amend or remove the proposed tax.
- Government action: The government has opposed the measure and could pursue constitutional or parliamentary procedures that result in a final budget without it.
- Final adoption: The tax would need to survive the legislative process and appear in the enacted budget before becoming law.
If the measure survives, technical rules would also need to establish how telecom operators calculate and report taxable data volumes.
Therefore, Netflix subscribers and other internet users in France should not expect an immediate new charge because of this vote.
The Bigger Picture
France’s proposed gigabyte tax reflects a growing debate over who should pay for the infrastructure supporting the digital economy. Telecom operators have invested in broadband and mobile networks, while global technology companies use those networks to distribute enormous volumes of content. Supporters see the levy as a way to make large digital platforms contribute more directly to the system they depend on.
However, taxing data traffic introduces challenges that a conventional revenue-based tax does not necessarily face. The measure could affect companies beyond the global platforms named in the debate, including domestic businesses and smaller digital services. Its final economic impact will depend on the legislation’s scope, the measurement framework and whether companies transfer costs to consumers.
Looking Ahead
The immediate focus will be on the remaining stages of France’s 2027 budget process. The Senate’s position, the government’s opposition and the final form of the budget will determine whether the proposed €0.055-per-GB levy survives. Until then, the measure remains a proposal rather than an active tax.
If implemented, the levy could influence the economics of streaming, gaming, cloud storage and other data-intensive services in France. Digital platforms would have to decide whether to absorb the cost, change their pricing or reduce the volume of data they transmit. For consumers, the most important question will be whether the proposal eventually leads to higher subscription prices or changes in the services they use.
Frequently Asked Questions
1. What is France’s proposed 5.5-cent-per-gigabyte tax?
It is a proposed tax of €0.055 for every gigabyte of data transmitted by content providers to internet users in France.
2. Which companies could be affected by the proposed tax?
The proposal identifies Google, Meta, Amazon, Netflix and Akamai among the major companies likely to be affected. Other streaming, gaming, cloud and digital content providers could also fall within its scope.
3. Will Netflix subscriptions become more expensive in France?
There is no automatic subscription price increase under the proposal. However, Netflix and other platforms could decide to pass some of the additional tax cost on to customers if the measure becomes law.
4. Who would pay the proposed tax?
The tax would be paid by the companies sending data to French internet users, not directly by households or internet service providers.
5. How would France calculate the tax?
Internet service providers would measure the volume of data transmitted by each content provider. The information would be consolidated and reported quarterly to the tax administration under regulatory supervision.
6. How much revenue does France expect from the tax?
Supporters estimate that the proposal could generate approximately €10 billion annually, based on an estimated 200 billion GB of annual data traffic and a rate of €0.055 per GB. This is an estimate, not confirmed government revenue.
7. Is France’s gigabyte tax already in effect?
No. The National Assembly approved the amendment on October 30, 2026, but the measure must still pass the remaining stages of the 2027 budget process before it can become law.
8. What is the proposed tax cap?
The amendment proposes limiting the liability to 15% of the provider’s revenue generated in France or 2% of its global revenue.
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