Amazon Wins Court Battle Over 250 Million Euro Tax Bill

BRUSSELS—In a significant victory for Amazon, Europe’s top court has ruled that the company does not have to pay 250 million euros ($273 million) in back taxes to Luxembourg. The decision marks a defeat for EU antitrust chief Margrethe Vestager’s efforts to crack down on sweetheart tax deals for multinational corporations.

Court of Justice Rules in Favor of Amazon

The Luxembourg-based Court of Justice of the European Union (CJEU) stated that the European Commission failed to prove that the tax ruling given to Amazon by Luxembourg constituted state aid that was incompatible with the EU’s internal market. The CJEU’s decision is final, bringing an end to the case.

An Amazon spokesperson expressed satisfaction with the ruling, 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.”

Criticism and Calls for Tax Reforms

However, not everyone is pleased with the outcome. Chiara Putaturo, Oxfam EU tax expert, criticized the decision, stating, “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 called on the EU to implement real tax reforms and address tax havens within its borders that allow companies to avoid paying their fair share of taxes.

Mixed Track Record for EU Antitrust Chief

This court defeat highlights Margrethe Vestager’s mixed track record when it comes to defending tax decisions against legal challenges. Just earlier this month, French utility Engie successfully fought against an EU order to pay 120 million euros in back taxes to Luxembourg.

The case in question is C-457/21 P Commission v Amazon.com and Others.

($1 = 0.9169 euros)

By Foo Yun Chee

the gist