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The European Commission is working on a possible levy covering very large companies, a design that could bring major technology firms into scope without naming them as targets. The proposal remains at an early stage; its threshold, tax formula and likely revenue are not public. It is being discussed ahead of EU budget talks, where any new EU revenue measure would require unanimous approval.
The European Commission is considering a levy on very large companies that could include major technology firms, while being framed as a broad-based tax rather than a measure aimed specifically at US Big Tech. The proposal is still being developed, and its design has not been made public, according to reporting by Expansion and the Financial Times.
The idea is to put new EU revenue options back on the agenda before member-state leaders meet in Brussels on October 15 and 16 to discuss the bloc’s next long-term budget. The Commission is seeking a model that could raise money from large businesses without explicitly singling out companies such as Alphabet, Meta or Amazon, the reports say.
The possible levy appears to draw on the Commission’s Core levy, proposed last summer as a fixed contribution from EU companies with annual revenue above €100 million. That earlier plan was intended to raise about €6 billion, but it faced strong opposition from member states concerned that it would affect medium-sized businesses and weaken their competitiveness. The new idea would substantially raise the threshold, leaving fewer companies liable.
The Commission has not settled whether a revised levy would retain a fixed payment or instead charge a percentage of revenue. Nor has it published a new threshold or revenue estimate. The broad, cross-sector approach could mean that some European companies also pay, and the distribution of the burden would depend on the eventual rules.
A New Revenue Option for the EU Budget
The debate matters because the EU is negotiating a €2 trillion budget for 2028–2034 and must reconcile competing views on its scale and financing. New EU-level revenue could, in principle, help fund spending priorities without increasing national contributions, though the proposed levy’s actual yield is unknown.
It also carries trade and political risks. The Commission’s reported effort to frame the measure across sectors reflects concern that a tax seen as targeting US technology companies could draw a response from Washington or renew trade tensions. A neutral scope on paper would not, by itself, settle how the tax affects companies or how governments judge its fairness.
For businesses, the threshold and formula would determine whether the measure reaches only a narrow group of global companies or also affects large European firms. Member states would have to agree unanimously on new EU own resources, giving each government a role in shaping or blocking the proposal.
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From the Core Levy to a Higher Threshold
The proposal follows a difficult reception for the Commission’s earlier Core levy. That plan would have applied to all EU companies above €100 million in revenue, irrespective of sector. Governments objected that the threshold could capture a substantial number of medium-sized businesses, not just the largest multinational firms.
Raising the threshold could address some of that criticism, while a tax covering all sectors could help the Commission avoid naming technology companies as its intended targets. But the balance would depend on the exact threshold, the payment calculation and how revenues were attributed across countries. Even a broadly worded tax could affect member states differently.
The discussion is also part of a wider budget dispute. Germany, the Netherlands, Austria, Sweden, Finland and Denmark—the group described as the “frugal” states—have called for cuts of hundreds of billions of euros, according to the source report. The Friends of Cohesion, including Spain, want a larger budget to address Europe’s challenges. Commission President Ursula von der Leyen has presented new revenue sources as a way to support budget priorities.
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The Levy’s Design Is Still Open
The proposal is not yet at an advanced stage, and the Commission has not publicly set out its proposed threshold, payment formula or expected proceeds. It is also unclear which companies would meet any revised eligibility test, how the burden would be distributed among member states, or whether the levy would resemble the earlier fixed-payment plan.
The reports describe a proposal under consideration, not an adopted EU tax. No agreement among member states has been reported. Because new EU own resources require unanimous approval, the measure could be changed substantially, delayed or rejected during negotiations.
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Budget Talks Set the Next Test
EU leaders are due to meet in Brussels on October 15 and 16, with the 2028–2034 budget among the issues requiring progress. The Commission is seeking to bring new revenue proposals into that discussion, but the summit is not confirmation that a levy will be adopted.
The next concrete indications to watch for are whether the Commission publishes a formal proposal and how member states respond to its scope and financing formula. Any eventual measure would need unanimous approval as an EU own resource, so negotiations could continue beyond the summit.
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Key Questions
Has the EU approved a tax on Big Tech?
No. The Commission is considering a possible levy, but the proposal remains at an early stage and has not been approved by member states.
Which companies could be affected?
The reports say the levy could apply to very large companies across sectors, potentially including major technology firms. The Commission has not announced a threshold or a list of companies that would be liable.
How would the levy be calculated?
That has not been decided publicly. The earlier Core levy proposed a fixed contribution, while the revised approach could retain that model or link the charge to a percentage of revenue.
Why is the Commission discussing the levy now?
The idea is being raised ahead of negotiations on the EU’s 2028–2034 budget. New EU revenue could help finance spending, but the measure would require unanimous agreement from member states.
Source: rss
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