Italy has initiated significant tax demands against Meta Platforms, X (formerly Twitter), and LinkedIn, which could have far-reaching implications for the entire European Union.

The companies involved have 60 days to appeal the claims, with an option for an additional month if they seek a settlement proposal, after which they can pursue court proceedings or negotiate with tax authorities.

Authorities contend that the act of creating an account on these platforms is a taxable transaction, as users exchange their personal data for free services.

This action underscores Italy's commitment to enforcing tax compliance among international tech firms operating within its jurisdiction.

The case is particularly sensitive given the ongoing trade tensions between the EU and the U.S., which have been exacerbated during previous administrations.

Italy has a history of pursuing tax claims against tech companies, evidenced by Google's previous settlement of 326 million euros for tax issues related to 2015-2019.

While Meta has made its stance clear, LinkedIn and X have not commented on the matter, with LinkedIn stating it has nothing to share at this time.

These demands reflect Italy's broader strategy to ensure multinational corporations contribute their fair share of taxes, especially in the burgeoning digital economy.

Meta has publicly expressed its disagreement with the VAT applicability on user access to online platforms and claims to have cooperated fully with tax authorities.

Despite the ongoing tax dispute, Wall Street analysts maintain a strong buy consensus on META stock, indicating confidence in its future performance.

This case represents a pivotal shift in Italy's approach to tax enforcement, marking the first time formal assessment notices have been issued without a prior settlement agreement.

If upheld, this legal approach could set a precedent affecting various businesses across the EU that rely on user data, including sectors like airlines and publishing.