Going online is relatively simple. All you need is an internet plan, whether it be for the home or mobile, and you’re good to go. As long as you have an internet connection, you can watch videos, stream music, play games, and more. But it seems that over in France, they’re proposing what is essentially a gigabyte internet tax, where companies will need to pay the government for data they send to users in France.
French government proposes gigabyte internet tax
This was recently voted on by the French National Assembly, in which it passed by 11 votes to 10. This means that if it ever becomes law, companies that send data to users in France would have to pay an internet tax of €0.055 per gigabyte. According to estimates, this has the potential to raise as much as €10 billion per year.
So, how does this work? Basically, whenever a company like Google, YouTube, or Netflix sends data to users in France, like while streaming videos or music or just browsing the web, there will be a tax on every gigabyte sent over. It will require internet providers to measure the data, note which company sent it, and submit the totals to tax authorities every quarter.
However, it won’t be a free-for-all. The proposal suggests capping the tax at 15% of a company’s revenue in France, or 2% of its global revenue. Unsurprisingly, not everyone is a fan.
While tech giants like Google and Meta might have no issue paying the tax, smaller companies might. For instance, VideoLAN, the nonprofit behind the VLC media player app, says this could end up costing them €1 million a year.
Why are they doing this?
Right now, a country’s internet infrastructure is typically maintained by the telcos that provide the service. They’re in charge of maintaining it and upgrading it to keep up with demand. Through this tax, it aims to shift some of that burden onto the companies who generate the most data.
It is estimated that Google, Meta, Amazon, Netflix, and Akamai account for half the traffic that goes into France every year.
In addition to having a financial impact on companies, there’s a chance it could affect others too. For instance, to generate more revenue to offset the tax, companies like Google could charge more for ads. Netflix might increase its prices. Services that used to be free might soon require a subscription.
Thankfully, this hasn’t become law yet. While the votes are in favor of the proposal, it needs to make it through the rest of the budget process before it becomes law. So there’s a chance it might not come to fruition.
The post Per-Gigabyte Internet Tax Could Become a Thing in One EU Country appeared first on Android Headlines.
​Â
