The European Commission announced that it has concluded its state aid investigation, which included a tax refund request of 250 million euros against Amazon. This decision marks the end of the legal process against Amazon that has been ongoing since 2017.
In 2017, the European Commission found that Amazon reduced the taxes it had to pay to the EU through a structure it established in Luxembourg between 2006 and 2014. The commission stated that this building did not contain offices or personnel and was used only to reduce the tax burden. Thanks to this regulation, it was claimed that Amazon avoided taxation for a significant portion of its profits from online sales in Europe.
However, in 2021, the EU General Court annulled this decision of the Commission. The court ruled that Amazon’s tax regulations in Luxembourg did not give it an unfair advantage over other companies. Amazon argued that the methods it applied were in line with international tax principles and claimed that there were methodological errors in the Commission’s assessment. The court found this defense justified and invalidated the Commission’s decision.
In a statement this week, the European Commission said it had closed its state aid investigation into Amazon, taking into account guidance from EU courts. Amazon declined to comment on the matter.
Apple wasn’t as lucky as Amazon
On the other hand, the tax investigations carried out by the European Commission against other technology giants produced different results. In September 2024, the European Court of Justice ruled that the 13 billion euro tax advantage Apple received from Ireland was illegal and ordered the repayment of this amount. This decision was considered as an indicator of the EU’s harsh stance against the tax practices of large technology companies.