In a landmark legal verdict, Europe’s premier court has ruled decisively in favor of Amazon, absolving the tech giant from a €250 million ($273 million) back tax obligation to Luxembourg. This pivotal decision marks a setback for Margrethe Vestager, the EU’s antitrust chief, in her pursuit of reining in preferential tax arrangements for global corporations.
The Court of Justice of the European Union (CJEU), headquartered in Luxembourg, affirmed that the European Commission failed to substantiate the claim that Luxembourg’s tax ruling for Amazon constituted state aid incompatible with the EU’s internal market. This definitive decision underscores Amazon’s adherence to existing laws and dispels assertions of receiving special treatment.
Amazon responded promptly to the ruling through a spokesperson, stating, «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 for our customers across Europe.»
Despite Amazon’s satisfaction, Chiara Putaturo, Oxfam EU tax expert, expressed discontent, declaring, «Amazon got an early Christmas present this year, as the company dodged its decade-old tax bill to Luxembourg and can continue to do so.» Putaturo urged the EU to prioritize genuine tax reforms, emphasizing the necessity of addressing tax havens within its borders.
This legal victory adds a layer of complexity to Vestager’s track record in defending tax decisions against legal challenges. Just earlier this month, French utility Engie successfully contested an EU order to pay €120 million in back taxes to Luxembourg.
Identified as C-457/21 P Commission v Amazon.com and Others, this case illuminates the ongoing intricacies surrounding multinational corporations and taxation within the European Union. Amazon’s triumph in this high-stakes legal battle underscores the complexities of international tax law and regulatory scrutiny.