A victory for the French state. A setback for internet giants. France's digital services tax, which major online companies have fought since its introduction in 2019, was upheld on Friday, September 12, by the French Constitutional Council, which holds the highest constitutional authority. The ruling came in response to a challenge brought by Digital Classifieds France, a subsidiary of Germany's Axel Springer and owner of the SeLoger and MeilleursAgents real estate websites. The Council rejected the company's arguments, ruling that the tax did not violate the principles of equality before the law or public burdens, nor the freedom to conduct business, "nor any other right or liberty guaranteed by the Constitution." The tax was therefore declared constitutional.

This decision is both a legal and political victory for France, strengthening a highly sensitive tax that has been fiercely opposed for years by major digital companies – primarily American firms, the so-called GAFA (Google, Apple, Facebook and Amazon), now often referred to as "GAFAM to include Microsoft – as well as by US President Donald Trump. For France's Finance Ministry, the ruling also provides budgetary relief. The revenue generated by the digital services tax, which targets a select group of roughly 30 companies, has risen sharply in recent years. From €277 million in 2019 to €756 million in 2024, with projections reaching €774 million in 2025. Eliminating the tax would have created a significant shortfall at a time of fiscal austerity.

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