At odds: EU competition chief Margrethe Vestager (pictured) has lost out to Amazon’s Jeff Bezos
Amazon has won a £215million tax battle at the European Union’s top court.
The online retail giant founded by Jeff Bezos had been accused of striking a sweetheart deal with Luxembourg, which meant it did not pay tax on 75 per cent of its European profits.
Judges at a lower court said the deal was not unlawful, prompting the European Commission to appeal. But the EU’s Court of Justice yesterday dismissed its arguments, saying it had failed to demonstrate the arrangement ‘was a state aid that was incompatible with the internal market’.
This decision is final and cannot be appealed against. It will be a painful defeat for EU competition chief Margrethe Vestager, who has fought the special tax treatment that seems to be given to Silicon Valley giants.
US-based Amazon has its European headquarters in Luxembourg, which has a reputation as a tax haven.
Amazon has also come under fire for its tax contribution in the UK.
