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Europe announces new tax proposal targeting US tech companies

The flag of the European Union with a man walking away from it holding the Union Jack
The European Union has looked skeptically on large American tech companies. Photo: Thierry Monasse/Corbis via Getty Images

The European Commission proposed a new tax Wednesday that stands to hit major web companies like Google and Facebook. The new 3% tax on revenue applies to certain online businesses, including digital ads and ride-hailing, but The Wall Street Journal reports that not every country that's a member of the E.U. is on board.

Why it matters: It's the latest move in Europe to crack down on powerful American tech giants.