Amazon prevails in $270 million tax dispute, dealing a setback to EU’s Vestager

BRUSSELS—Amazon does not have to pay 250 million euros ($273 million) in back taxes to Luxembourg, Europe’s top court ruled on Thursday, marking a defeat for EU antitrust chief Margrethe Vestager’s crackdown on sweetheart tax deals for multinationals.

“The Court of Justice confirms that the (European) Commission has not established that the tax ruling given to Amazon by Luxembourg was state aid that was incompatible with the (EU’s) internal market,” the Luxembourg-based Court of Justice of the European Union (CJEU) said.

Its decision is final.

“We welcome the Court’s ruling, which confirms that Amazon followed all applicable laws and received no special treatment. We look forward to continuing to focus on delivering for our customers across Europe,” said an Amazon spokesperson.

Chiara Putaturo, Oxfam EU tax expert, criticized the decision.

“Amazon got an early Christmas present this year, as the company dodged its decade-old tax bill to Luxembourg and can continue to do so,” said Ms. Putaturo.