Amazon does not have to pay 250 million euros ($273 million) in back taxes to Luxembourg, Europe’s top court ruled on Thursday, marking a defeat for EU antitrust chief Margrethe Vestager’s crackdown on sweetheart tax deals for multinationals.
“The Court of Justice confirms that the (European) Commission has not established that the tax ruling given to Amazon by Luxembourg was state aid that was incompatible with the (EU’s) internal market,” the Luxembourg-based Court of Justice of the European Union (CJEU) said.
Its 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 for our customers across Europe,” said an Amazon spokesperson.
Chiara Putaturo, Oxfam EU tax expert, criticised the decision.
“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,” said Putaturo.
“This is why the EU must come forward 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 sidestep their tax bills through empty offices,” she added.
The court defeat for the EU highlights Vestager’s mixed track record in terms of defending tax decisions against legal challenges.
Earlier this month, French utility Engie won its fight 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.
