The French Senate has rejected a proposed law that would have levied a two percent tax on all French-based websites disseminating video content. The amendment, part of a budget bill passed by France’s lower house, would have meant that all advertising revenue for websites displaying “cinematographic or audiovisual works or documents” would have been taxed. The wording of the amendment might have also included news organisations, reports Variety.

It was unclear whether the tax has been flat-out rejected or if it may be revisited in the future. Budget minister Eric Woerth said the National Assembly may have tried to introduce the tax without properly consulting representatives of the industries that would have been affected by it and called for a “deeper reflection” on the effects of new taxes on France’s audiovisual market. France’s online ad revenue was 1.17 billion euros (£835 million) in 2006, according to the Internet Advertising Bureau.

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