The European Commission has shelved its proposal for an EU-wide digital levy on large technology companies, according to draft budget documents cited by Politico and other outlets. The tax, floated only two months ago, has been dropped from the bloc’s seven-year budget that will take effect in 2027. The decision removes a potential cost burden for U.S. firms such as Apple, Alphabet and Meta at a time when Brussels is seeking more favourable trade terms with Washington. To compensate for the forgone revenue, officials are weighing new duties on electronic waste, tobacco products and large EU-based corporations, which could collectively raise between €25 billion and €30 billion a year to help repay the EU’s pandemic-era debt. EU digital-policy officials signalled a further softening of the regulatory stance on 23 July, saying the Commission has no plans to compel Big Tech to shoulder the costs of complying with the bloc’s Digital Markets Act and other online-safety rules. Separately, sources told Reuters the Commission is expected to approve recent changes Apple made to its App Store business model to satisfy DMA requirements. The approval would spare the company from penalties that could have reached €50 million per day, although a separate €500 million antitrust fine imposed in April remains under appeal.