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France has led a push for internet companies with significant digital revenue in the EU to pay more tax at source, but has made little headway as Germany is cool on the idea, while member states with low corporate tax rates such as Luxembourg and Ireland firmly oppose the proposal. The European commission has estimated that multinational digital companies with investments in the EU are on average taxed at a rate 14 percentage points below that of other firms. The Paris-Washington digital tax spat is separate from a long-running transatlantic trade row , but it could be used by Trump to try to obtain EU concessions on trade. Le Maire has said the tax would target 30 companies, mostly American — including Google, Apple, Facebook and Amazon — but also Chinese, German, Spanish and British ones, as well as one French firm and several with French origins that have been bought by foreign companies. France has hit back at a US investigation into a new French tax on major internet companies , saying threats were not the way allies should resolve disputes. The French parliament approved a law on Thursday that would make France the first major economy to impose a tax on internet heavyweights. Sign up to the daily Business Today email or follow Guardian Business on Twitter at BusinessDesk Other countries have plans for their own taxes on digital giants. France has said it pressed on independently with its own tax because big internet companies such as Facebook and Amazon are able to book profits in low-tax countries no matter where the revenue originates from.

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