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The European Future Fund, a proposed sovereign wealth fund, would be financed by member states to invest in “high-potential European companies.” The draft plan cites Europe’s dearth of tech giants compared to global competitors, naming Google, Apple, Facebook and Amazon in the U.S., and Baidu, Alibaba and Tencent in China. (Politico)

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Talking point: The EU and some individual European countries have been at the forefront of regulating tech companies by strengthening data privacy, antitrust and taxation. Measures like the General Data Protection Regulation; France’s three per cent digital tax on Big Tech companies; and fines for anticompetitive conduct are one way to place limits on foreign firms’ dominance in the region. Bolstering local companies through investments is another. The Future Fund will need support from all 28 member countries, however, and that’s not a given. Many members, including France and Germany, have supported the idea of loosening rules that limit state aid for R&D and competition laws for companies in the union. Others, including the Netherlands, have been reluctant to “pick winners” to compete with foreign rivals.

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The ministers will discuss a proposal from the OECD that would tax companies based on where they make sales, rather than where they’re headquartered. It also suggests that if companies pay below a minimum level of tax on their global earnings, individual countries will be able to levy them for the difference. (Quartz)

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Talking point: Big Tech firms are the main targets of the tax proposals, since they often build products in a few countries where most of their employees are based—typically the U.S.—and then sell them around the world. Emerging economies, where online platforms have millions of users and consumers but limited assets, are pushing particularly hard for changes to the taxation system. In April, India released a paper proposing to tax multinationals on their local economic activity, regardless of how international negotiations turn out. Other governments and the tech giants are likely to take this threat by India to move forward on its own seriously, because of the country’s track record of regulating Big Tech. In February, India imposed new e-commerce rules favouring local firms over the objections of Amazon and Walmart.