Sales platform Amazon increases the fee that sellers pay in France by 3 percent, equal to the digital tax that has just been introduced. This tax was intended to improve the competitive position of smaller companies, CNBC writes.
Last July the French government voted in favor of the digitax, which had to limit the power of large companies such as Amazon, Facebook and Google. "It is a problem that such companies in France pay less tax than a large bakery or cheese producer," said finance minister Bruno Le Maire at the time.
From October onwards, Amazon will implement the compensation increase and will openly state the tax as a reason for this in a mail to sellers. This means that thousands of sellers will have to pay more to be able to sell their stuff via the platform. The company itself receives extra money as a result of this intervention, with which the tax increase can be paid.
Peter Hiltz, responsible for international tax policy at Amazon, called the tax "harmful" and "discriminatory" in a press release in July. Moreover, it would harm all sellers from France, according to him.
President Donald Trump also stated that it would unfairly penalize American companies. He therefore already spoke of the possibility of retaliation in the form of rates.
The companies in question make a total of € 750 million a year with their so-called digital activities, of which € 25 million comes from France.