France advances data-traffic tax targeting Netflix, Google and Meta

France has voted in favor of a proposed tax that would charge platforms including Netflix, Google and Meta 5.5 cents per gigabyte, a unit used to measure data traffic, according to the report.^[1]

The proposal still faces the Senate, leaving its passage uncertain; the report also raises the possibility of a White House response.^[1]

If enacted, the tax would make additional data traffic an additional expense for covered platforms. Video requires substantial data transmission, so growth in viewing could also increase the associated tax bill.^[1]

Platforms could absorb the cost, adjust prices or improve data-delivery efficiency. Absorbing it would reduce profit, while higher prices could affect customer demand; the ultimate impact depends on the final tax coverage and terms.^[1]

Impact

• Video streaming servicesRisk

  Netflix and any rivals covered by the final rules could need to reassess subscription prices against delivery costs. Passing the tax through to subscribers could weaken demand and change price differences between competing services.^[1]

• Advertising-funded social and video platformsRisk

  Google and Meta could need advertising revenue to cover an additional traffic-related cost. For covered services, more viewing would need to generate enough extra revenue to offset the tax associated with that traffic.^[1]