French National Assembly Adopts Controversial Data Tax of 5.5 Cents per Gigabyte

The French National Assembly voted to approve an amendment establishing a new tax on digital data transmissions, setting a levy of 5.5 cents per gigabyte sent to internet users in France. Adopted on Friday, October 30, 2026, during the budget debate for the 2027 fiscal year, the proposal was introduced by Socialist lawmaker Laurent Lhardit. The vote passed by a narrow margin of 11 to 10 in an assembly where only 35 members participated.

The legislative measure is designed to target content providers rather than individual consumers. Companies that emit data toward French subscribers—such as video streaming platforms, social media networks, cloud storage providers, and video game distribution services—would be directly liable for the contribution. Promoters of the amendment, including Socialist deputies, estimate that the tax could generate up to 10 billion euros annually based on the volume of internet traffic directed to French households.

Under the proposed framework, internet service providers like Orange, Free, SFR, and Bouygues Telecom would be responsible for measuring data volumes and identifying issuing companies. These metrics would then be transmitted to the tax administration under the supervision of regulatory authorities. The text specifies that data collection must remain consolidated and anonymized, prohibiting the monitoring of personal content, individual destinations, or private messages.

To prevent disproportionate financial strain on high-traffic businesses, the amendment includes a capping mechanism. The tax would be limited to a maximum of 15 percent of the issuer's revenue generated in France or 2 percent of its total global revenue. Content delivery networks and intermediaries are also explicitly addressed within the scope of the legislation to accurately trace outgoing data flows from local server caches.

The financial impact could be substantial for industries dealing with massive file transfers. For example, a 100-gigabyte data transfer would yield a theoretical gross contribution of 5.50 euros before accounting for caps and exemptions. Services involving high-definition streaming, large software updates, and video game downloads—such as Steam, PlayStation, Xbox, Netflix, and YouTube—stand among the primary sectors affected by the mechanism.

Despite the parliamentary milestone, the measure faces considerable uncertainty and strong opposition from the executive branch. David Amiel, Minister of Action and Public Accounts, voiced concerns regarding the feasibility of the tax, warning that roughly half of the projected revenue could end up burdening smaller content providers, including domestic French businesses. Philippe Juvin, general rapporteur of the finance committee, also delivered an unfavorable opinion on the proposal.

The text does not impose an automatic or direct tax on consumer internet bills, meaning subscription prices will not instantly change as a direct result of the vote. However, economic analysts note that affected corporations could potentially absorb the costs, restructure their offerings, or pass portions of the financial burden onto users and advertisers. The amendment still requires full approval through the ongoing budgetary process, including upcoming debates in the Senate, before it can become permanent law.