France abandons controversial data‑transfer levy after razor‑thin parliamentary vote

French National Assembly narrowly rejected a proposed levy on data traffic from content providers, voting 11-10 to kill the measure.

The bill would have required operators to collect €0.055 per gigabyte that providers transmit to French internet users, with supporters estimating the scheme could generate up to €10 billion annually.

Critics argued the methodology for measuring traffic was flawed and that the tax could penalise large platforms while offering little benefit to consumers; the government also questioned the €10 billion projection as unrealistic.

The vote reflected deep partisan divisions, with the governing coalition split and opposition parties unified against the measure; the final count hinged on a single dissenting vote from within the majority bloc.

The defeat comes after months of lobbying by tech firms and digital rights groups, who warned that the levy could increase subscription costs and push content providers to limit data‑heavy services such as video streaming.

While the tax is now dead, the debate highlights ongoing tensions in Europe over how to fund public finances in the digital age; policymakers may revisit alternative approaches, such as broader digital services taxes, but any future proposal will need to address measurement challenges and secure broader parliamentary support.