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Brexit Trade Fears, U.S. Probes Threaten U.K. Digital Tax

July 17, 2019, 7:07 AM

The fight to stop countries from taxing digital service revenue from U.S. tech giants such as Facebook Inc. and Alphabet Inc.'s Google has just started.

The U.S. Trade Representative last week launched an investigation into France’s new digital tax measure. The U.K.'s proposed plan could be next.

The U.S. hasn’t yet announced if or how it will react to the U.K.’s proposed 2% digital services tax, but the response could mirror the approach it’s taking against France, with one wrinkle: U.S. lawmakers have been quick to warn the measure could imperil a post-Brexit trade deal with one of the U.K.’s ...