Amazon Prevails in $270 Million European Tax Dispute

The European Union's highest court ruled that Amazon is not required to pay $273 million in back taxes to Luxembourg, dealing a setback to EU antitrust head Margrethe Vestager's efforts to challenge favorable tax agreements for global corporations.

The Court of Justice of the European Union (CJEU) determined that the European Commission failed to prove Amazon's tax deal with Luxembourg constituted illegal state aid.

Amazon expressed satisfaction with the verdict, emphasizing its compliance with the law and no special treatment was received. Conversely, Oxfam's Chiara Putaturo criticized the decision, urging the EU to adopt more robust tax reforms and address the use of tax havens.

This judicial outcome casts further doubts on Vestager's success in upholding tax rulings, evidenced also by Engie's recent victory over a similar EU tax repayment order. The official case reference is C-457/21 P Commission v Amazon.com and Others.