EU Concludes Amazon State Aid Case without Imposing Back Taxes

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Amazon can finally conclude a longstanding state aid investigation in the European Union. The European Commission announced on Thursday that it has ended its probe into whether Luxembourg, the Member State hosting Amazon’s EU headquarters, provided the company with “selective tax advantages.” As a result, Amazon is not required to pay any unpaid taxes.

The investigation traces back nearly ten years. A significant development occurred in 2017 when the Commission determined that Luxembourg had granted Amazon illegal tax benefits amounting to €250 million. However, this decision was overturned by EU judges upon appeal. Despite this, the investigation remained open technically, but the EU has now decided to close the case, acknowledging that it has not succeeded in this particular state aid matter, unlike the $15 billion Apple case.

According to a press release, the Commission justified its decision to close the case by stating that no tax regulations were violated, guided by the rulings of EU Courts.

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