The EU competition authority is officially ending its probes into Amazon. The EU was defeated in court over the retail giant’s tax deals earlier.
From 2015 to 2017, the European Commission, led by European Competition Commissioner Margrethe Vestager, opened investigations into Amazon, Fiat, and Starbucks. According to the Commission, Luxembourg allegedly gave selective tax advantages to Amazon and Fiat, while the Netherlands did so to Starbucks. The Commission suspected the companies were paying artificially lower taxes as a result.
Court rulings followed. Vestager falsely accused the Netherlands and Luxembourg of providing unfair tax advantages. The Commission also made mistakes in investigating these deals, which failed to prove selective advantages.
End of Vestager’s term
The end of the investigation into the alleged tax advantages coincides with Vestager’s impending departure. The new European Commission is about to be installed, and Vestager will not be part of it. Vestager was known for her tenacity in launching antitrust investigations into large tech companies, some of which had major implications for their operations. Spanish socialist Teresa Ribera will take over her post.
Vestager recently succeeded in an ongoing case against Apple’s tax policies in Ireland. The EU court ruled in September that Apple must pay €13 billion in additional taxes to Ireland. This was because profits outside the U.S. went through Ireland, on which the company paid too little tax.