US launches probe into India's Digital Services Law over tax on online companies

The United States has initiated an investigation into India's Digital Services Law adopted in March 2020, on suspicions of being 'unfair'. The United States Trade Representative (USTR) announced on Tuesday that his office is beginning the investigation into digital services taxes under Section 301 of the 1974 Trade Act.

According to a press release by the office, it provides the USTR the "broad authority to investigate and respond to a foreign country's action which may be unfair or discriminatory and negatively affect U.S. Commerce." Besides India, UK, Brazil, the EU, Spain, Indonesia will also probe in this regard.

The Press Release from the Office of the United States Trade Representative can be read here.

The USTR added that a Federal Register notice has been issued providing details of the investigations as well as information on how members of the public can provide their views through written submissions.

"President Trump is concerned that many of our trading partners are adopting tax schemes designed to unfairly target our companies. We are prepared to take all appropriate action to defend our businesses and workers against any such discrimination," said USTR Robert Lighthizer.

It is to be noted that Washington is against the idea of imposing tax revenues from online sales and advertising, saying they single out US tech giants like Google, Apple, Facebook, Amazon and Netflix.