EU Commission finds that Luxembourg granted unlawful State aid to Amazon


On 26 February 2018, the European Commission (EC) published the non-confidential version of its final decision issued on 4 October 2017 in the Amazon State aid investigation opened in October 2014.

According to the decision, in the EC’s opinion, Luxembourg’s tax treatment of Amazon gave rise to State aid in the amount of up to € 250 million. Amazon as a group received an individual selective advantage in the form of the tax ruling in question as it sets, in the views of the EC, a transfer pricing result and methodology that is not in line with the arm’s length principle.

This decision is the latest in a number of related high-profile cases that concern the EC’s approach on State aid, in particular in relation to tax rulings and transfer pricing.

We refer to a PwC EUDTG newsletter in this respect, which you can read here.

For more insights and to understand the implications for your organisation, please contact Pieter Deré.