According to the European Commission, the favourable rulings Starbucks has agreed to with the Netherlands are illegal, while similar deals between Amazon and Luxembourg and between Apple and Ireland are also being investigated.
LuxLeaks sped up investigation
For more than two years, Europe has been investigating tax deals between major multinationals and members of the European Union. That investigation gained traction when plenty of deals with Luxembourg's tax services leaked to the public.
Starbucks has allegedly funneled several millions through the Netherlands into a British subsidiary. Because that particular subsidiary does not owe the Netherlands any taxes, Starbucks can avoid major taxation in the Netherlands.
Ireland and Luxembourg have similar deals with Apple and Amazon respectively, which is an attempt to lure major companies to their country. Fiat has also been given a advantageous tax deal in Luxembourg, one that the European Commission finds unacceptable.