Brussels seeks broad levy to tax Big Tech
The European Commission is examining a levy on large companies to target US tech firms without taxing them individually.
Brussels is examining a broad levy on large companies that could also affect Apple, Google and Meta. According to Reuters, which bases its report on coverage by the Financial Times, the approach should generate additional EU revenue while avoiding a direct confrontation with Washington.
According to six people familiar with the matter, the European Commission is working on changes to the Corporate Resource for Europe proposal, known as CORE for short. In its current form, companies generating more than 100 million euros in turnover in the European Union would pay a fixed annual contribution of between 100,000 and 750,000 euros.
The new idea is to apply the levy more broadly to large companies, so that it cannot be classified as a digital tax targeting American technology companies. European companies would therefore also fall under the scheme. According to Reuters, the Commission wants to raise more revenue without formally singling out one sector as a target.
A Commission spokesperson confirmed to Reuters that the institution wants to work towards an agreement on new own resources for the EU budget. That does not confirm that the proposed levy has already been decided. The precise thresholds, amounts and legal form are still under discussion.
The debate is part of a longer-running conflict over European digital rules. With the Digital Markets Act and the Digital Services Act, the EU has already imposed obligations on large online platforms. The Commission says these rules are intended to keep markets open, protect consumers and give businesses more choice.
The United States has long opposed digital taxes that, according to Washington, unfairly target American companies. According to Reuters, President Donald Trump threatened in June to impose 100 per cent tariffs on goods from countries introducing a digital services tax. A new EU levy could therefore become part of a broader trade conflict.
For Dutch companies, the scope is particularly important. A broad fixed contribution could also affect large European companies, while an exclusively digital levy would probably mainly target American platform companies. Until the Commission and the member states reach an agreement, there is no new tax that companies must pay now.
One story, several perspectives
What is established
- The Commission is examining changes to a proposal for new EU own resources.
- A possible broad levy could affect large American technology companies.
- There is still no final decision on the amounts or introduction of the levy.
Left
Arguments Large technology companies benefit substantially from the European market and, from this perspective, should contribute proportionately to public services and digital regulation.
Values Tax fairness, public oversight and limiting the concentration of economic power.
Consequences A levy could generate public revenue and strengthen the EU’s negotiating position vis-à-vis platform companies.
Centre
Arguments A broad and transparent levy is institutionally easier to defend than a measure targeting only American companies. The scheme must be legally robust and predictable.
Values Equal treatment, legal certainty and European budgetary stability.
Consequences A compromise could limit trade conflicts, but a broad levy could also affect European companies and consumers.
Right
Arguments The EU should be cautious about new taxes that could ultimately make things more expensive for companies and consumers. European budgetary problems should not be solved through ever-new levies.
Values Competitiveness, low burdens and national budgetary responsibility.
Consequences A levy could prompt American countermeasures and make investment or digital services in Europe more expensive.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The text clearly distinguishes between reporting about a possible levy and established EU policy. The financial amounts and American response are directly attributed to Reuters.
- confirmed The Commission is examining a broad levy that could affect Apple, Google and Meta. — Reuters reports this based on FT coverage and six officials involved. source
- confirmed The current CORE form refers to companies with more than 100 million euros in turnover and a fixed contribution of between 100,000 and 750,000 euros. — This threshold and range appear in the Reuters report. source
- confirmed The European Commission has not yet introduced a definitive new levy. — Reuters describes it as a proposal in development; the Commission speaks of discussions on new own resources. source
- confirmed The EU uses the Digital Markets Act and Digital Services Act for rules governing large platforms. — The European Commission describes its supervision of very large platforms and search engines. source
Editor's note
The possible levy is still a policy option under negotiation. The amounts and thresholds come from Reuters’ account of FT coverage, not from a definitive Commission proposal.Sources
- Brussels looks to capture Big Tech through tax on large corporations — Reuters via Investing.com
- All companies operating in the EU must follow our laws — European Commission
- Supervision of the designated very large online platforms and search engines under DSA — European Commission
More on this in Dutch media
- AD — „big tech”
- RTL Nieuws — „big tech”
- FD — „big tech”