The European Commission is considering broadening a proposed levy on large companies in a move that could increase the EU’s revenues from major US technology groups while avoiding a tax specifically targeting digital companies, the Financial Times reported on Wednesday.
The Commission is examining changes to its Corporate Resource for Europe, or CORE, proposal, which would require companies operating in the EU with annual revenue above €100 million to make a fixed annual contribution. The changes could bring companies such as Apple, Meta and Google within a broader tax framework without singling out the technology sector.
Under the current CORE proposal, companies other than small and medium-sized businesses with annual net turnover of at least €100 million would make a lump-sum contribution to the EU budget. The Commission estimates the measure could generate around €6.8 billion annually on average during the 2028–2034 budget period.
The current proposal envisages annual payments ranging from €100,000 to €750,000, according to the Financial Times and Reuters. EU officials are considering changes that could increase the levy while extending it more broadly across large corporations.
The discussions come amid concerns in several EU capitals that a tax explicitly aimed at digital companies could provoke a response from Washington. US President Donald Trump warned in June that countries imposing digital services taxes on American companies could face tariffs of up to 100 per cent on their exports to the United States.
The United States has argued that digital services taxes unfairly discriminate against American companies, which dominate the global technology sector. The US Trade Representative has previously threatened retaliatory trade measures against countries introducing such levies.
According to the Financial Times, some EU governments oppose a digital-only tax because of concerns about relations with the United States, while others have also objected to the CORE proposal in its current form. One option under consideration is therefore to broaden the measure so that it applies to a wider group of large companies.
An EU official told the newspaper that expanding the levy could provide a way to raise revenue while avoiding the political sensitivity of a tax focused specifically on US technology companies.
A European Commission spokesperson said the institution remained ready to support the European Council and European Parliament in reaching an agreement on the new own-resources package, which it considers necessary to finance the EU’s priorities over the next decade.
The broader package proposed by the Commission includes five new EU revenue sources and is expected to raise around €58.5 billion a year on average during the 2028–2034 budget period. Adoption of the new own resources requires unanimous approval by EU member states.
Apple, Google, Meta and the Computer & Communications Industry Association, which represents several major US technology companies, did not immediately respond to requests for comment.
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