EU’s proposed levy on digital revenues - will affect FANG stocks.
The important part here is “revenues”, which was smart on EU’s part. But there are still holes on this, it seems:
First, Tax on revenue is too discouraging for local or foreign companies and too difficult to sustain.
Second, All FANGs are getting 13.125% corp tax on foreign income (less from 21%) and 3% may remove the gap, but still 3% on revenues that is hard to calculate the impact.
I think there’s a minimum - tax applies to only companies making above some revenue, so you can say this is encouraging competition to some extend.