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Because these large tech companies don't pay taxes currently. The current tax laws have a huge loophole in respect to large foreign internet businesses. Now they're trying to close that loophole.


I think it is impossible to sell anything in the EU without VAT, which is a much higher taxation rate than profit (not as percentage, but as money: VAT is 20-25% of the product or service price, profit can be as low as 1-5%. What the likes of Amazon, Google or Facebook are not paying is profit tax, pretending they have no profits. French companies that have no profits also don't pay profit tax.


Before the new VAT rules Amazon had a deal over VAT with Luxembourg, similar to the deal with Ireland on income tax.

http://europa.eu/rapid/press-release_IP-17-3701_en.htm




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