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And you think this new surcharge won’t be passed onto the consumers in France?



It will be, ending the unfair competitive benefits of tax avoidance big Internet companies currently enjoy in much of Europe.


It will, but it'll not be above what the market is willing to bear. Right now digital services are charged at the level that a market can bear, but only digital services are the ones that don't get taxed.

To make stuff fair - you'd have to cut all other taxes or institute this one.

(I'd prefer no taxes, but that's never going to happen)


This is the biggest fallacy about taxation, if they could charge whatever the price+tax is, they already would be.


It’s not a fallacy. They charge to maximize revenue. If they charge more, people buy less. If their cost to produce goes up, their optimal price likely goes up, depending on elasticity.

This is Econ 101. Draw some supply-demand curves, compute total profit, increase costs, and see how the optimal point moves on the curve.

Historically companies do raise prices as cost to produce increases.




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