France considers big tech regulation in response to US tariffs

French Economy and Finance Minister Eric Lombard suggested countering US President Donald Trump’s tariffs by more strictly regulating the data usage of US Big Tech companies.

Lombard stated in an interview with Le Journal Du Dimanche, “We could strengthen certain administrative requirements or regulate the use of data.”

Lombard added that another option, without being more specific, could be to “tax certain activities.”

A French government spokesperson said last week that the EU’s retaliation against US tariffs could include “digital services that are not currently taxed.”

This proposal has been strongly rejected by Ireland, which hosts the European headquarters of many major US tech firms.

European Commission President Ursula von der Leyen has vowed to retaliate against Trump’s trade war.

Technology is seen as a likely area for Europe to retaliate. The European Union has a 157 billion euro surplus in goods trade, meaning it exports more than it imports, but a 109 billion euro deficit in services, including digital services.

Major tech giants like Apple, Microsoft, Amazon, Google, and Meta dominate many parts of the market in Europe.

Lombard said on Friday that a trade war with Washington could prevent France from reducing its bloated budget deficit. “Tax revenues will probably fall, and then GDP will fall according to forecasts, which will worsen the deficit even more,” Lombard said in an interview with BFMTV/RMC.

French Prime Minister François Bayrou said on Sunday that Trump’s tariff offensive would reduce France’s GDP by more than 0.5%.

“The risk of job losses, such as economic slowdown and the cessation of investments, is also definitely very high. The consequences of this will be significant: Trump’s policies could cost us more than 0.5% of GDP,” Bayrou said in an interview with Le Parisien.