AFP, Brussels :
France and Germany jointly agreed a scaled-back version of an EU digital tax Tuesday, that they hoped would break significant opposition to the plan amongst bloc partners.
The idea, revealed to AFP by a European source, will be formally proposed by Paris and Berlin to EU finance ministers meeting in Brussels to discuss the issue later Tuesday.
France, with the backing of EU-presidency holder Austria, has been frustrated with its plan to impose a new tax to ensure that global tech platforms like Facebook and Google pay their fair share in Europe.
Paris argues the measure would be a vote-winning accomplishment for mainstream EU politicians before the European Parliament elections next May, in which anti-Brussels populists could do well.
In its new plan, digital tech giants would see a three percent tax imposed on advertising sales, meaning the scope of the measure would be largely limited to Google and Facebook.
“This makes a lot of sense as it will cover some of the most profitable activities,” the European source said.
Google and Facebook dominate the online advertising market in Europe, with their dominance growing.
With the new plan, other online behemoths such as Amazon, AirBnB and Spotify would likely to be excluded.
