Amazon will not have to pay 250 million euros in back taxes to Luxembourg, the European Supreme Court ruled on Thursday, marking a defeat for EU antitrust chief Margrethe Vestager's crackdown on tax treaties for multinationals.
“The Court of Justice confirms that the (European) Commission has not found that the tax ruling given by Luxembourg to Amazon constituted State aid incompatible with the (EU) internal market,” the Luxembourg-based Court of Justice of the European Union. (CJEU) said.
His decision is final.
“We welcome the Court's ruling, which confirms that Amazon followed all applicable laws and received no special treatment. We look forward to continuing to focus on delivering products to our customers across Europe,” a spokesperson said. from Amazon.
Chiara Putaturo, Oxfam's EU tax expert, criticized the decision.
“Amazon got an early Christmas present this year as the company avoided its decade-old tax bill to Luxembourg and can continue to do so,” Putaturo said.
“This is why the EU must come up with real tax reforms. It can start by not looking the other way when it comes to tax havens within its borders, allowing companies to avoid their tax bills through empty offices,” she added.
The court defeat for the EU highlights Vestager's mixed record in defending tax decisions against legal challenges.
Earlier this month, French utility Engie won its battle against an EU order to pay 120 million euros in back taxes to Luxembourg.
The Amazon case is C-457/21 P, Commission v Amazon.com and others.
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