U.S. Labels India, Italy, Turkey Digital Taxes Discriminatory

The U.S. said decisions by India, Italy and Turkey to tax local revenue of Internet giants such as Facebook Inc. discriminates against American companies, but won’t be taking action against the countries for now.

The taxes are “inconsistent with prevailing principles of international taxation, and burden or restricts U.S. commerce,” the office of the U.S. Trade Representative said in a statement Wednesday. While it won’t retaliate now, the USTR will “continue to evaluate all available options,” it said.

The countries are among several that have instituted so-called digital services taxes, or levies on local sales of companies including Alphabet Inc. ...