French lawmakers approve $11.2 billion internet tax based on traffic usage, costs $0.06 per gigabyte of content accessed

France’s National Assembly approved a proposed levy based on the amount of internet data content providers send to users. The vote was 11-10 on October 30. The measure was added to the country’s next budget, but it still faces further parliamentary scrutiny. It matters because it would tax traffic itself rather than mainly taxing digital sales or earnings.

Under the amendment introduced by socialist lawmaker Laurent Lhardit, providers would pay €0.055 per gigabyte distributed to French users. Google, Meta, Netflix, Amazon, TikTok, and Akamai could fall within its scope. Internet service providers would measure traffic and help identify the companies responsible for it.

The proposal’s authors estimate that the levy could raise about €10 billion annually. It also includes limits of 15% of a company’s French revenue or 2% of its worldwide revenue. The tax is not yet law. It must clear the remaining stages of France’s 2027 budget process.

A data-traffic tax is a charge tied to the quantity of digital content sent to users. In this proposal, the measure is €0.055 for each gigabyte distributed to French subscribers. The idea is to make major content providers contribute according to the network traffic they generate, rather than only according to their financial results.

That differs from taxes based on advertising revenue, profits, or subscriptions. A company could owe money under a traffic levy because it sends large amounts of video or other content, even if its service is free to users. Lhardit specifically cited Facebook, Instagram, and TikTok when arguing that providers could not simply pass the charge to users through subscription prices.

The proposal’s explanatory notes mention Google, Meta, Netflix, Amazon, and Akamai. It also could cover TikTok and similar platforms. The approach remains controversial because measuring and attributing traffic may require complicated monitoring. Government Minister David Amiel questioned whether that could be done without threatening privacy.

The scale is enormous: approximately 200 billion gigabytes of data pass through French internet providers each year. That figure includes traffic moving through the country’s networks to subscribers. It shows why a small charge per gigabyte could produce a very large government receipt.

The amendment’s author, socialist lawmaker Laurent Lhardit, estimates that the tax could generate around €10 billion, or $11.2 billion, in annual revenue. About five major companies identified in the amendment account for roughly half of the traffic. The proposal therefore focuses on providers whose services create especially large data flows.

The estimate is not guaranteed revenue. The measure has only passed an initial parliamentary stage and must survive further scrutiny. The proposed tax also includes a cap of 15% of a company’s French revenue or 2% of its worldwide revenue. Those limits could affect the final amount collected from individual companies.

The likely targets are companies that generate substantial internet traffic in France. The amendment specifically mentions Google, Meta, Netflix, Amazon, and content delivery network Akamai. TikTok and similar platforms could also be included, depending on how the final rules are applied. These services are prominent because their content reaches many French users and can consume large amounts of data.

The proposal would focus on traffic volume instead of advertising revenue, profits, or subscriptions. A video platform, social network, search service, or CDN could therefore face a charge when it delivers large quantities of content. The rate would be €0.055 per gigabyte, with internet providers measuring the traffic and identifying the responsible companies.

Lhardit argued that global technology companies would bear most of the impact because they generate much of the data reaching French subscribers. The proposal also includes revenue caps. Its future remains uncertain because it still needs further parliamentary approval and could change during the budget process.

The proposal gives internet service providers a central administrative role. Providers including Orange, Free, and Liad would have to measure how much data travels to French users. They would also identify the content companies responsible for sending that traffic.

The collected information would be submitted every quarter to France’s tax administration. France’s telecommunications watchdog, Arcep, would supervise the process. This system is intended to turn network usage into a tax record, linking gigabytes delivered to particular providers and calculating the resulting levy.

The arrangement raises practical and privacy questions. Government Minister David Amiel questioned whether traffic could be measured and attributed without complicated monitoring requirements. The proposal covers content delivery networks as well as ordinary providers, adding another layer to attribution. If the measure clears the remaining stages of the 2027 budget process, these reporting duties could become part of the law.

A content delivery network, or CDN, is a system that stores copies of online content closer to the people requesting it. The article says CDNs reduce loading times and network congestion. Akamai, named in the proposal, is an example of a company operating this kind of network.

CDNs can complicate tax attribution because the copy delivered to a French user may come from a CDN server rather than directly from the content company’s main server. Network operators may see the CDN handling the connection, while the underlying content provider owns or supplied the material. Rules would therefore need to connect CDN-delivered traffic with the provider responsible for it.

The proposal explicitly accounts for CDNs, showing that lawmakers anticipate this issue. Internet providers would still be expected to measure data and identify responsible companies. However, the article does not explain the technical method. Government Minister David Amiel warned that measurement and attribution could require complicated monitoring and create privacy concerns.

When a user requests a webpage, video, or post, the content travels from the provider’s server or a CDN location through interconnected networks to the user’s internet service provider. The provider then carries it over the final connection to the user’s phone, computer, or another device. The article specifically notes that CDNs store copies closer to users.

Network operators normally can observe information such as the endpoints involved, the amount of data transferred, the timing of connections, and network addresses. They may not be able to read the actual content when communications are encrypted. These details can help estimate traffic, but they may not always reveal which company created or supplied the content.

The article does not describe this complete network process or list every observable detail. It does say providers would need to measure data volumes and identify responsible companies, while Arcep supervises reporting. David Amiel questioned whether that attribution could occur without complicated monitoring and privacy risks.