USTR Section 301 Probe on France’s Digital Services Tax Draws Tech Cheers

The Office of the U.S. Trade Representative will begin a Section 301 investigation of France’s new digital services tax, which just passed the French parliament, USTR said: The 3 percent tax’s structure “as well as statements by officials suggest that France is unfairly targeting the tax at certain U.S.-based technology companies." A Federal Register notice will follow with instructions on how to comment on or testify, USTR said Wednesday. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, and ranking member Ron Wyden, D-Ore., praised the investigation’s launch. “The United States would not need to pursue this path if other countries would abandon these unilateral actions and focus their energies on the multilateral process that is underway at the Organization for Economic Cooperation and Development,” they said. The U.S. Chamber of Commerce, Information Technology and Innovation Foundation, Information Technology Industry Council and Computer and Communications Industry Association welcomed the investigation, in statements through Thursday. French President Emmanuel Macron hadn't yet signed the bill, also passed Thursday.