The agency will accept public comment on the plan through 6 January and hold a hearing the following day.
France's 3% levy applies to revenue from digital services earned by companies with more than 25 million euros ($27.86 million) of revenues from France and 750 million euros ($830 million) worldwide.
The French Finance Minister, Bruno Le Maire said, "It's not worthy of an ally, and it's not the behaviour we expect from the USA toward one of its main allies, France, and more generally, Europe".
Around 30 companies would be affected, including European, Chinese and American firms.
It targets revenue instead of profits, which are often reported by tech giants in low-tax jurisdictions like Ireland or Luxembourg in a practice that has enraged governments.
"It is not what one would expect from an ally, it is not what one would expect from the United States", Le Maire said.
The tech trade group ITI said it welcomed the administration's decision and urged continued negotiations on global taxes under the auspices of the Organization for Economic Cooperation and Development.
The tariff spat marks a new low in testy relations - from an early bone-crunching handshake to the US president appearing to flick dandruff off the younger man's shoulder - between Trump and French President Emmanuel Macron. "It does not only target US companies but also Chinese or European companies".
The Commission did not want to confirm the potential retaliatory response from the European side. "So we'll see what happens".
Wintry weather wreaks holiday weekend havoc across much of the U.S.
Another storm system developed in the mid-Atlantic Sunday and forecasters said it would move into a nor'easter through Monday. Blizzard conditions are already impacting the High Plains and around Duluth, Minnesota, on the shores of Lake Superior.
"If anybody is going to take advantage of American companies it's going to be us".
The US tariffs and the French tax are likely to be a priority during a meeting between Trump and Macron on the sidelines of a North Atlantic Treaty Organisation conference in London on Tuesday. "I've always said American wine is better than French wine!"
US Trade Representative, Robert Lighthizer said that the government was also considering to open similar investigations of digital services taxes of Austria, Italy and Turkey, but there's no mention of proposed digital taxes in Canada and Britain.
The French president said after hosting Trump for the G7 summit in August that an agreement could be reached on the tax dispute, but so far this has not materialised.
Lighthizer said that "strong action" was needed to address this European subsidies, after a WTO compliance report concluded that Europe did not fully terminate the financial aid given to Airbus.
For more than a year the United States and China have been locked in a bitter trade battle that has seen both sides impose tariffs on billions of dollars worth of each another's goods.
"Brazil and Argentina have been presiding over a massive devaluation of their currencies which is not good for our farmers", Trump tweeted, adding: "Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the United States from those countries". "Our economy basically comes from commodities, it's what we've got".
Stock prices fell in the USA after Trump's remarks were reported, with the US potentially moving forward with hiking tariffs on December 15.