France has imposed a digital services tax on technology giants, Facebook, despite the United States threatening to retaliate.
Washington said the tax unduly targets US tech giants.
The 3 per cent tax will be levied on sales generated in France by multinational firms like Google and Facebook.
The French government has argued that such firms, who have their headquarters outside the country pay little or no tax.
But the US government has ordered an inquiry into the move, which could result in retaliatory tariffs.
The tax was approved by the French senate on Thursday, which is coming one week after it was passed by the lower house; the National Assembly.
The bill states that any digital company with more than $850 million in revenue, with at least €25 million of it being made in France, would be subject to the levy.
The tax will be applied retroactively, and applied from early 2019. It is expected to rise to about €400 milion this year.