Amazon Wins 355 Billion KRW Tax Arrears Lawsuit Against EU

EU Commission Appeal Dismissed
6-Year Legal Battle Ends
European Tax Reform Discussions Expected to Intensify
Apple Appeal Case Impact Also Noted

Amazon, the world's largest e-commerce company, has won the final victory in a legal battle against the European Union (EU) over tax benefits worth 250 million euros (approximately 355 billion KRW). This victory is expected to intensify discussions on tax reforms targeting multinational corporations in major European countries.

According to major foreign media on the 14th (local time), the Court of Justice of the European Union (ECJ), the EU's highest court, dismissed the appeal filed by the European Commission, the EU's executive body, which claimed that the ruling to cancel the order for Amazon to pay overdue taxes was unjust. The ECJ stated that "the European Commission failed to prove that the tax benefits Luxembourg provided to Amazon constituted unlawful state aid incompatible with the internal market."

[Image source=Reuters Yonhap News]

In 2017, the European Commission ordered Amazon to pay approximately 250 million euros in overdue taxes, alleging that Luxembourg, an EU member state, had granted Amazon illegal tax benefits equivalent to state aid. Both Luxembourg and Amazon disagreed with the Commission's decision and filed objections with the General Court of the EU. At that time, the court ruled in favor of Amazon, stating that Luxembourg did not grant selective advantages to Amazon, and the Commission appealed the decision.

Amazon welcomed the outcome. Following the ECJ ruling, Amazon issued a statement saying, "(This ruling) confirms that Amazon complied with all relevant laws and did not receive special treatment," adding, "We will continue to focus on serving customers across Europe." On the other hand, Margrethe Vestager, EU Commissioner for Competition, publicly expressed dissatisfaction, stating, "The court is significantly limiting what we can do to ensure companies pay their fair share of taxes."

The ruling is seen as another blow to the European Commission's efforts to prevent tax benefits for multinational corporations and create a fair competitive environment. Chiara Putaturo, an EU tax expert at the global international relief and development organization Oxfam, criticized the decision, saying, "Amazon has been avoiding paying taxes in Luxembourg for 10 years and has now been granted permission to continue doing so. This final ruling is a Christmas gift from the ECJ to Amazon."

Foreign media have focused on how this ruling might affect the ongoing legal battle between Apple and the EU over tax arrears. The EU General Court previously annulled the European Commission's decision ordering Apple to pay 13 billion euros (approximately 17.6 trillion KRW) in overdue taxes in 2020, and the appeal process for that case is currently underway.

This content was produced with the assistance of AI translation services.