France has approved a digital services tax despite threats of retaliation by the U.S., which targets American tech giants.
The 3 percent levy will apply to revenue from digital services earned in France by firms with over $845 million worldwide.
U.S. President Donald Trump ordered an investigation into the tax, a step that could lead to the United States imposing new tariffs or other trade restrictions.
France pushed ahead with the tax after EU countries failed to agree a levy valid across the bloc in the face of opposition from Ireland, Denmark, Sweden and Finland.
Other EU countries including Austria, Britain, Spain and Italy have also announced plans for their own digital taxes.