Disappointment for the European Union and triumph for Amazon, Starbucks and Fiat. The lawsuits linked to tax optimization initiated years ago by the authorities of the Old Continent are finally buried. Explanations.
Ten years of investigation
It all started in 2015 and 2017 when the European Commission considered that Luxembourg had granted too favorable tax advantages to Fiat and Amazon and that the Netherlands did the same with Starbucks, notably by artificially reducing the amount of taxes due in the country.
Later, judges in Luxembourg declared that the Commission made errors in its investigations into the transactions carried out by these companies and ruled that they had not received any selective advantage, recalls the Wall Street Journal.
This Thursday, November 28, the European Union competition regulatory authority therefore took a symbolic decision which seems to mark a turning point in tax matters.
Quoted by Silicon.uk, the authority therefore concluded: “Today, taking into account the guidance of the EU courts, the Commission adopted three final decisions closing its in-depth investigations and confirming that, when granting their respective tax rulings, Luxembourg and the Netherlands ‘have not granted these companies Fiat, Amazon and Starbucks selective tax advantages contrary to EU state aid rules’.
The EU keeps up the pressure
But the big companies would be wrong to rejoice too much, because the lawsuits against Apple continue. Remember that last September, judges ordered Apple to pay 13 billion euros in taxes in Ireland. They therefore confirmed the decision of the European Commission which challenges the tax optimization practices of large groups within certain member countries.
Our colleagues also point out that Commissioner Margrethe Vestager is stepping down in a few days. We will therefore have to see what the attitude of his successor will be and whether he will continue on the same path. However, it would be very surprising if the EU eased the pressure on the Tech giants, especially after the adoption of the DSA and DMA which are currently being applied seriously.
What to remember:
- European Union competition regulator halts prosecution of Amazon, Starbucks and Fiat
- These companies were accused of having obtained tax advantages in Luxembourg and the Netherlands
- Apple remains sued on similar grounds in Ireland
