EU Considers Bigger Levy on Large Companies to Tax Big Tech
Brussels wants more revenue from Apple, Meta, and Google, among others, without implementing a digital tax that could anger Washington.
October 7, 2026 - 8:02 am
The European Commission is exploring ways to collect more money from US tech companies, according to Financial Times sources. Instead of targeting only tech firms, they plan to introduce a levy on all large companies within the EU.
Background
This proposal builds upon an existing initiative called Corporate Resource for Europe (CORE). Under CORE, any company with annual revenue exceeding €100 million would contribute a fixed amount annually to the EU budget. Currently, these payments range from €100,000 to €750,000 per year, which is a small fraction of multinationals' earnings.
An EU official stated that some capitals oppose a "pure digital tax" due to potential US retaliation, suggesting a broader levy on all large companies as an alternative.
The Plan
The Commission initially proposed a digital tax targeted at Big Tech in July 2025, but leaked drafts indicate that this was dropped in favor of a more comprehensive approach. Any EU tax plan requires the approval of all 27 member states, giving each government veto power.
Taxing US tech companies is a sensitive issue for Washington, with President Donald Trump criticizing EU rules on Big Tech and threatening trade retaliation over previous digital tax proposals.
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Published: October 7, 2026 - 8:02 am UTC
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