Saudi Press

Saudi Arabia and the world
Monday, Jun 02, 2025

Amazon Wins European Union Court Appeal In Luxembourg Tax Case

Amazon Wins European Union Court Appeal In Luxembourg Tax Case

The European Commission in 2017 accused Luxembourg of handing tax privileges to the internet retail giant that amounted to illegal state aid.

Amazon scored a major legal victory on Wednesday when an EU court annulled an order from the bloc's powerful antitrust authority that Luxembourg recoup 250 million euros ($295 million) in back taxes.

The European Commission in 2017 accused Luxembourg of handing tax privileges to the internet retail giant that amounted to illegal state aid.

But the EU General Court found "no selective advantage" had been given to the firm by the small EU Duchy, a statement said.

The setback for the EU lands less than a year after iPhone maker Apple spectacularly won its appeal in the same court against the European Commission's blockbuster order in 2016 that Apple repay Ireland 13 billion euros.

French energy giant Engie meanwhile lost its appeal on Wednesday in the same court against a similar EU order to repay Luxembourg 120 million euros in taxes.

In that case, the EU's General Court said the commission did demonstrate a tax advantage by Luxembourg to the company.

Amazon hails ruling


The cases came in the wake of the 2014 LuxLeaks revelations that unearthed secret deals between Luxembourg and hundreds of companies guaranteeing super low tax bills.

In the Amazon case, in 2017 Europe's competition chief Margrethe Vestager Luxembourg of an illegal deal with the internet giant to pay less tax than other businesses.

In a statement, Amazon said "we welcome the Court's decision, which is in line with our long-standing position that we followed all applicable laws and that Amazon received no special treatment".

At the heart of the case was a violation of the so-called "arm's length principle", which for tax purposes is meant to ensure that transactions between subsidiaries are based on prices other companies would pay.

The court said that the EU's methods for calculating the advantage was "based on an analysis which is incorrect in several respects," the statement said.

The European Commission was not immediately available for comment, but it has previously said that win or lose its cases have had a positive effect, with international efforts currently under way to close tax loopholes.

In recent weeks, the United States has embraced the idea of a global minimum corporate tax that would make special deals offered to multinationals a thing of the past.

Talks are ongoing at the OECD to decide on the minimum tax that if confirmed would likely see higher taxes for US tech giants and other multinationals.

The EU has had trouble defending those decisions, losing against Apple, but also in its case against Starbucks.

The commission appealed the EU General Court's decision in the Apple case, which will now go to the EU's highest body, the European Court of Justice.

The lower court similarly struck down an order by Brussels that Starbucks pay 30 million euros in back taxes in the Netherlands, but upheld a decision against Fiat in Luxembourg.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
×