The tech giants will testify on Monday, says a report.
Google, Facebook and Amazon will testify against France’s digital Taxation next week, according to a Wednesday report from Reuters. On July 12, the French Senate approved a 3 percent tariff on big tech businesses supplying services to French users, together with the Trump administration in the time saying it’d investigate if the transfer amounts to unfair trade practices by discriminating against US companies.
The Digital tax affects businesses that make at least $750 million in revenue globally — about $844 million — as well as $25 million in electronic sales in France. The US investigation into France’s new rules will be conducted by US Trade Representative Robert Lighthizer. It’s going be a 301 probethe same type that contributed to tariffs being placed on China last year.
In Google’s written testimony, Nicholas Bramble, the organization’s trade policy counsel, stated France’s digital tax threatens to undermine the Organisation for Economic Co-operation and Development’s (OECD) procedure.
“It is a Departure from long-established tax principles and distinctively targets a subset of companies. French government officials have emphasized repeatedly that the DST is meant to target overseas technology businesses,” Bramble said.
Facebook and amazon told Reuters that The French taxation could cause difficulties for their business models. The Information Technology Industry Council, which represents Amazon, Facebook, Apple, Google and others, will testify Monday that the taxation is”a troubling precedent,” according to this report.
“The United States is extremely concerned that the digital services tax that’s expected to pass the French Senate… unfairly targets American companies,” Lighthizer said in a statement . “The president has directed that we explore the ramifications of this legislation and determine whether it is discriminatory or foolish and burdens or restricts United States commerce.”
The UK first announced a similar digital tax last October. At the time, the UK Government’s economic and finance ministry tweeted that the taxation was meant for tech giants to shoulder, not tech startups.