US reportedly reaches digital tax deal with France
US tech companies paying the tax would be able to deduct it, French President Emmanuel Macron reportedly tells the press.
Corinne ReichertSenior Editor
Corinne Reichert (she/her) grew up in Sydney, Australia and moved to California in 2019. She holds degrees in law and communications, and currently writes news, analysis and features for CNET across the topics of electric vehicles, broadband networks, mobile devices, big tech, artificial intelligence, home technology and entertainment. In her spare time, she watches soccer games and F1 races, and goes to Disneyland as often as possible.
I've been covering technology and mobile for 12 years, first as a telecommunications reporter and assistant editor at ZDNet in Australia, then as CNET's West Coast head of breaking news, and now in the Thought Leadership team.
"We've done a lot a work on the bilateral basis, we have a deal to overcome the difficulties between us," Macron reportedly told press Monday, speaking alongside US President
after the G7 summit in France.
"France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA," Trump tweeted. "We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!"
"The United States is very concerned that the digital services tax, which is expected to pass the French Senate tomorrow, unfairly targets American companies," Lighthizer said in a statement in July. "The president has directed that we investigate the effects of this legislation and determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce."
The new French law affects companies that make at least €750 million in revenue worldwide -- around $844 million -- as well as €25 million in digital sales in France. Over the past decade, the French government and the European Union have been investigating Apple, Google, Amazon and Facebook to determine whether they pay enough in taxes.
The White House,
, Facebook, Spotify and the Internet Association didn't immediately respond to requests for comment. Netflix, Amazon and Twitter declined to comment. In place of a comment, Google pointed to Bramble's testimony last week.
First published at 9:51 a.m. PT on Aug. 26. Updated at 11:42 a.m.: Amazon declined to comment; 12:38 p.m.: adds Google comment; Aug. 27 at 10:50 a.m.: Twitter declined to comment
Watch this: Google tightens grip on Android data, Apple Arcade pricing