Taxation of large digital platforms in the light of international developments

Question for oral answer O-000022/2025

to the Commission

Rule 142

Pasquale Tridico, Aurore Lalucq on behalf of the Committee on Economic and Monetary Affairs

Subject: Taxation of large digital platforms in the light of international developments

The Commission and Parliament should remain committed to the principle that global challenges, such as taxing the digital economy, require global solutions. This was reaffirmed through the EU’s endorsement of the OECD/G20 Inclusive Framework for an international tax reform. Parliament has consistently underlined the importance of ensuring that large digital multinationals contribute appropriately to public finances in the jurisdictions where they generate value. However, no final agreement has been reached so far. Recent decisions by the current US leadership undermine the possibility of reaching consensus on an internationally coordinated approach to the taxation of large digital companies. In addition, the US Congress is advancing legislation that may have implications for EU Member States that apply a digital services tax (DST). In parallel, the EU agreed to establish a digital levy as a new own resource. While this levy has been delayed in favour of a multilateral approach, it was recently put back on the table by the Commission President.

1.How does the Commission assess the state of OECD negotiations, particularly with respect to Pillar One? How does it assess the implications of recent US executive actions for the viability of a multilateral solution for the taxation of large digital platforms?

2.In the absence of an agreement, would the Commission consider proposing a unilateral approach to digital taxation? What specific conditions would trigger its action? How does it propose to preserve the OECD agreement as a priority and to act without further undermining it and increasing global fragmentation?

3.Does the Commission consider that departing from multilateralism is an appropriate policy approach? Does it intend to reassess its 2018 proposals on the DST and significant digital presence and, if it does so, to consider their potential economic and geopolitical implications, including for trade retaliation? What concrete steps does it intend to take to avoid fragmentation among Member States, which could both undermine internal cohesion and the EU’s external credibility?

4.Can the Commission provide a clear cost-benefit analysis of the economic and revenue impact of an EU-wide DST as well as to what degree such a tax would be passed on to the consumer?

Submitted: 25.6.2025

Lapses: 26.9.2025