The European Union is considering a broader tax on large companies as a way to raise more revenue from major US technology firms without directly targeting Big Tech and risking a fresh trade confrontation with Washington.
The European Commission is exploring changes to its proposed Corporate Resource for Europe (CORE) levy that could bring companies with annual revenues above €100 million within the scope of an annual lump-sum tax, the Financial Times reported, citing six officials familiar with the discussions.
The approach would allow the EU to capture more revenue from technology giants including Apple, Google and Meta while applying the tax broadly across large companies rather than introducing a levy specifically aimed at digital businesses.
The move comes as EU governments search for additional sources of funding for the bloc’s long-term priorities and face concerns over the potential economic and political consequences of directly taxing American technology companies.
Under the current CORE proposal, companies operating in the EU with annual revenues above €100 million would pay a fixed yearly contribution ranging from €100,000 to €750,000.
The proposed changes would broaden the measure to cover a wider group of large corporations, potentially increasing the amount raised while making it harder for the US government to argue that the measure unfairly singles out American technology companies.
An EU official told the FT that some member states oppose a standalone digital tax because of concerns about provoking the United States, while others are also unhappy with the existing CORE proposal.
“The solution is to expand the tax to cover pretty much all the big companies,” the official said.
The European Commission confirmed that discussions were continuing on the EU’s next package of revenue measures, although it did not provide details of the proposed changes.
“The Commission remains ready to support the Council and European Parliament in reaching an agreement on the new own resources package,” a spokesperson said, describing the measures as important for financing the bloc’s priorities over the next decade.
The proposal could put the EU in a delicate position as it tries to increase tax revenues from some of the world’s most profitable technology companies while avoiding a direct confrontation with Washington.
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US President Donald Trump has previously threatened severe retaliation against countries that impose digital services taxes on American companies.
In June, Trump threatened a 100 per cent tariff on goods from countries that introduce such taxes, escalating pressure on governments considering measures aimed at US technology firms.
The US Trade Representative’s office has also repeatedly criticised digital taxes in Europe, arguing that they discriminate against American companies because US firms dominate the global technology sector.
A broad corporate levy could therefore offer Brussels a way to increase contributions from Big Tech while reducing the appearance that US companies are being specifically targeted.
Apple, Google, Meta and the Computer & Communications Industry Association, which represents several major US technology companies, did not immediately respond to requests for comment.
The discussions come as the EU continues to seek new sources of revenue to support its budget and finance priorities ranging from economic competitiveness and infrastructure to security and other long-term programmes.
Any changes to the CORE proposal would still require agreement among EU member states and the European Parliament before they could become law.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
