EU: "Amazon received unfair advantages from Luxembourg" | RetailDetail

EU: "Amazon received unfair advantages from Luxembourg"

EU: "Amazon received unfair advantages from Luxembourg"

A report from the European Commission now declares that Amazon has received unfair advantages through its deal with the Luxembourg government. The Commission feels the deal was partially cosmetic, in order to disguise its true intent.

Quick decision

It took only 2 weeks, back in 2003, for the Luxembourg government to analyse and sign an agreement with Amazon, much quicker than is usually the case in such matters. The European Commission wonders whether an independent party would have accepted that deal under normal market conditions in the same way Luxembourg had done.

 

The case revolves around LuxOpCo, Amazon European headquarters which manages all European websites. That company had a 2013 net turnover of 13.6 billion euro, about a fifth of Amazon's total turnover. Regardless of the high sum, Amazon barely paid any taxes on that income, allegedly assisted by Luxembourg.

 

The commission's preliminary ruling is that the deal constitutes unlawful state support, while it is still investigating similar deals (Fiat in Luxembourg, Apple in Ireland and Starbucks in the Netherlands).

Questions or comments? Please feel free to contact the editors


Microsoft builds competitor for Amazon Go

14/06/2018

Microsoft is working on its own technology that should render checkouts in stores obsolete. The American company says it wants to be an ally for the retail sector, mostly in its struggle against Amazon Go.

Amazon bans customers who return too much

24/05/2018

Amazon is putting a stop to customers that return too many items or that “misbehave” according to the retailer: whoever crosses the line, will be banned. Dozens of customers have taken to social media to complain about this unilateral account removal.

LVMH invests millions in fashion search engine Lyst

24/05/2018

French luxury group LVMH, led by Bernard Arnault, will invest millions of dollars in Lyst once again. The luxury fashion search engine wants to expand its global expansion this way.

Amazon now delivers packages to car trunks

25/04/2018

From now on, Amazon delivers orders to the trunk of your car. The retail and technology giant has given its Prime subscribers access to get packaged delivered to the trunk of their car, without any additional costs. The service is currently limited to the United States.

Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.