Trump Administration Starts Probe of French Digital Tax
iStock
The Trump administration launched a probe of France's proposed digital tax which appears to target U.S. tech giants such as Alphabet (GOOGL) - Get Report and Amazon.com (AMZN) - Get Report .
The United States Trade Representative's office said in a statement Wednesday that "The structure of the proposed new tax as well as statements by officials suggest that France is unfairly targeting the tax at certain U.S.-based technology companies."
The measure faces a key vote in the French legislature Thursday. It would impose a 3% tax on companies providing targeted advertising and other services with total annual revenues of 750 million euros ($844 million) and 25 million euros ($28 million) in France.
"The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies," said U.S. Trade Representative Robert Lighthizer in the statement. "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."
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