EU: justice cancels the reimbursement of 250 million euros imposed on Amazon


European justice disowned the European Commission by canceling the reimbursement of 250 million euros imposed on Amazon, which was accused of having benefited from illegal tax advantages.

An advantage of 250 million euros in Luxembourg

The tax rebates obtained by Amazon in Luxembourg have been ruled legal by European justice, to the chagrin of the European Commission, which saw these 250 million euros as irregular state aid. A victory for the giant Amazon.

At the end of an investigation, the European Commission estimated in October 2017 that the agreement signed in 2003 and renewed in 2011 between Amazon and Luxembourg amounted to unlawful state aid. Thus, the Commission had quantified the amount of these advantages at 250 million euros and had requested their reimbursement.

A tax advantage deemed legal

In the press release of its decision, the European justice system considered that ” none of the findings set out in the contested decision is sufficient to demonstrate the existence of an advantage (…) so that it should be canceled as a whole “. Thus, Amazon will not have to reimburse the 250 million as ordered by the European Commission.

The American giant was delighted with this decision which is ” in line with our long-standing position of following all applicable laws and (not) receiving any preferential treatment “. Luxembourg also expressed its satisfaction with the decision.

Margrethe Vestager, European Commissioner for Competition, said: “ We will carefully study the shutdown and think about possible next steps . The committee can appeal the decision to the CJEU. However, in July 2020, the CJEU had already taken the decision to cancel Apple’s repayment of 13 billion euros to Ireland.