EU Ends Amazon, Starbucks State Aid Investigations

The European Commission has closed its state aid investigation into Amazon, deciding that the company will not have to pay €250 million ($263 million) in back taxes. This decision follows a legal saga that began in 2017 when the Commission found Amazon had used a shell company in Luxembourg to reduce its tax obligations. However, the EU courts annulled the Commission's ruling, agreeing with Amazon's argument that their tax practices were legal and did not confer an unfair advantage. The closure of this case reflects the Commission's acceptance of the EU Courts' guidance, which also led to the closure of similar investigations into Fiat and Starbucks. While the Commission did not succeed with Amazon, it previously won a significant case against Apple, requiring the company to pay back €13 billion to Ireland. These cases highlight the ongoing scrutiny and legal complexities surrounding tax rulings and state aid within the EU.