Amazon was declared the winner in a tax legal battle where the EU ordered it to pay Luxembourg the amount of €250 million or around $303 million in back taxes. The win for the American retail giant is said to be a big blow to European Commissioner Margrethe Vestager's campaign against preferential deals.
Why Amazon was favored in the court
As per Reuters, the hitch, which is Amazon’s win in the tax case, triggered renewed calls from EU lawmakers for a global corporate tax deal. Despite losing, analysts said that Vestager is not likely to give up on her crusade regarding the amount of tax that big companies should pay.
In any case, based on the EU’s court ruling, Amazon won in the legal dispute after the group of legislators was not able to show that Luxembourg gave Jeff Bezos’ company a special treatment that violates state aid rules.
"The Commission did not prove to the requisite legal standard that there was an undue reduction of the tax burden of a European subsidiary of the Amazon group," the EU judges stated in the ruling.
This legal dispute stemmed from the order that Amazon received in 2017. The European Commission ordered the American e-commerce and tech firm to pay €250 million to Luxembourg for back taxes.
Second loss for EU tax crusaders
It was mentioned that this is the second defeat for Vestager as it also lost in the court tussle against Apple last year. At that time, the American tech company contested an EU order for it to pay €13 billion or $15 billion in Irish back taxes.
Similar to Amazon’s case, the EU’s court ruled that the commission failed to prove that the Irish government had granted a tax advantage to Apple. The European Commission has since filed an appeal against the ruling in the iPhone maker tax dispute.
Apple and Amazon were said to be targeted by Vestager in the EU's campaign to put an end to tax agreement practices being used by EU states to attract major companies. The group said that such types of deals are not fair.
Meanwhile, Amazon said in a statement that it welcomed the judges’ decision. The company added that it has always been Amazon’s stance to follow all applicable laws and reiterated that it has not received any preferential or special treatment in its dealings.


US Stock Futures Rise as S&P 500 and Nasdaq Hit Record Highs Amid Earnings Optimism and Iran Tensions
Samsung Reports Record Profit as AI Boom Drives Memory Chip Demand
Wall Street Mixed as Apple Earnings Boost Nasdaq and Oil Prices Ease
Amazon Stock Dips Despite Record Earnings as AI Infrastructure Spending Surges
Novartis Q1 2026 Earnings Miss Expectations as Generic Competition Pressures Sales
Tokyo Inflation Slows Despite Energy Pressures and BOJ Policy Outlook
Robinhood Q1 Earnings Miss Expectations, Stock Drops After Hours
U.S. Cybersecurity Pushes Faster Patch Deadlines Amid Rising AI-Driven Threats
Coles Group Q3 Sales Rise Driven by Supermarkets and E-Commerce Growth
US-Iran Conflict Escalates Amid Oil Blockade and Rising Global Tensions
Panama Defends Port Takeover Amid U.S.-China Tensions and Canal Dispute
Supreme Court Asked to Reinstate Mail-Order Access to Abortion Pill Mifepristone
WuXi AppTec Stock Surges on Strong Q1 Earnings and CRDMO Demand Growth
Google Secures Pentagon AI Deal for Classified Projects
Australia Targets Meta, Google, and TikTok With New News Payment Tax Proposal
WTI Crude Oil Prices Rise Amid Iran Conflict Uncertainty
AI Stocks Rally in Asia as Oil Surge and Hawkish Central Banks Shake Global Markets 



