The European Commission is to unveil plans for a digital tax on big US tech companies. The move is aimed at recovering billions of euros from multinationals that divert their earnings to low-tax nations.
According to a draft plan, Brussels proposes big tech companies should be taxed on overall revenue in the EU and not just on their profits, at a rate of around 3 percent.
The plan is fanning fears of a further worsening of trade relations between the EU and the United States as Brussels prepares to retaliate against US President Donald Trump's move to impose higher tariffs on steel and aluminum imports.
Brussels looks set to unveil the plan on the eve of a March 22 EU summit, and ahead of an April G20 meeting of the world's most developed nations.
For the proposal to become reality, it must be unanimously approved by all EU countries. It remains to be seen whether the big states can win the support of smaller ones that currently offer tax breaks to the tech titans.