Amazon does not have to pay €250m in back taxes to Luxembourg, Europe's top court ruled today, marking a defeat for EU competition chief Margrethe Vestager's crackdown on sweetheart tax deals for multinationals.
"The Court of Justice confirms that the (European) Commission has not established that the tax ruling given to Amazon by Luxembourg was state aid that was incompatible with the (EU's) internal market," the Luxembourg-based Court of Justice of the European Union (CJEU) said.
Its decision is final.
"We welcome the Court's ruling, which confirms that Amazon followed all applicable laws and received no special treatment. We look forward to continuing to focus on delivering for our customers across Europe," said an Amazon spokesperson.
Chiara Putaturo, Oxfam EU tax expert, criticised the decision.
"Amazon got an early Christmas present this year, as the company dodged its decade-old tax bill to Luxembourg and can continue to do so," said Putaturo.
"This is why the EU must come forward with real tax reforms. It can start by not looking the other way when it comes to tax havens within its borders allowing companies to sidestep their tax bills through empty offices," she added.
The court defeat for the EU highlights Vestager's mixed track record in terms of defending tax decisions against legal challenges.
Earlier this month, French utility Engie won its fight against an EU order to pay €120m in back taxes to Luxembourg.
Meanwhile, in November, the Advocate General of the EU's highest court proposed that the court should set aside the judgment of the lower General Court in the Apple tax case and refer it back to the General Court for a new decision.
The opinion follows an appeal by the commission after the General Court overturned three years ago the commission's finding that the tech giant had underpaid taxes totalling €13.1 billion due to Ireland between 2003 and 2014.
An Advocate General's legal opinion is not binding, but in most cases is later reflected in the court’s final judgment.
