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European Commission Ends Amazon Tax Investigation Without Penalty

The EU closes its state aid case against Amazon after courts annulled earlier rulings, citing no violations of tax rules.

  • The European Commission has officially closed a long-running investigation into Amazon's tax arrangements in Luxembourg, determining no unpaid taxes are owed.
  • The case, initiated in 2017, alleged that Luxembourg granted Amazon illegal tax benefits worth €250 million, but EU courts annulled the decision on appeal.
  • Amazon successfully argued that its tax structure complied with international tax principles and did not provide an unfair advantage over competitors.
  • The Commission's closure of the case follows guidance from EU courts, which found no breach of state aid rules in Amazon's tax practices.
  • This decision contrasts with the EU's recent success against Apple, which was ordered to repay €13 billion in illegal tax benefits to Ireland.
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