Amazon Clinches Win in EU, Defeats Margrethe Vestager in the EU $270M Tax Bill Fight

Amazon Inc. claimed its win in a fight against the European Commission that accused it of benefiting from illegal tax breaks. The top court in Europe sided with the American e-commerce giant by dismissing the appeal of the EU and effectively upholding the previous ruling that favored the company.

In declaring its decision, the European Court of Justice (ECJ) explained that the EU's executive unit had not established that a tax agreement between Amazon and Luxembourg was a state aid that was not compatible with the internal market, as per CNBC.

Blow to EU’s Margrethe Vestager

The Court of Justice's latest resolution in Amazon's $270 million or €250 tax bill is said to be a binding ruling. It was handed down on Thursday, Dec. 14, and officially discarded the European Commission's appeal.

In any case, business observers opined that the outcome is another burning defeat for Margrethe Vestager, the EU Competition's commissioner who led the campaign against special tax treatment being granted to major firms by member states. She has been involved in this effort for years and slapped Apple Inc. with a record €13 billion penalty, a case still awaiting a final decision at the top court.

Reactions to ECJ's Ruling

Reuters reported that the EU top court's decision is final. This means Amazon no longer has to shell out $273 million to pay taxes to Luxembourg. The spokesperson of the company issued a statement shortly after its court win.

"We welcome the Court's ruling, which confirms that Amazon followed all applicable laws and received no special treatment," he said. "We look forward to continuing to focus on delivering for our customers across Europe."

On the other hand, some individuals are against the case's outcome. An Oxfam EU tax expert, Chiara Putaturo, slammed the decision by saying, "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."

She added, "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."

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