EU Digital Chief Says Priority Is Pushing Bloc's Tech Changes

Europe's digital chief said regulators are studying controversial tax practices that critics allege reduce the tax bill for giant US technology companies, but she added that her priority is to push the restructuring of the Continent's tech and telecom sectors to make them more competitive.

"I'm aware that in the tax strategies of some companies they want to pay zero tax, or anyhow a very low level of tax," said Neelie Kroes, the European Union commissioner for the bloc's digital agenda. "There is a high-level group [at the commission] that is studying that…but we first should start with making the [telecommunications] sector healthy." The tax strategies of several big US tech companies have come under global scrutiny recently, with critics alleging they have improperly reduced these companies' tax liabilities. The industry has come under pressure in Brussels and other European capitals for domiciling certain businesses in low-tax regimes, such as Ireland, lowering their liabilities.