EU investigates Amazon government aid

EU investigates Amazon government aid

The European Commission will investigate whether Amazon has illegitimately received government aid from the Duchess of Luxembourg. It receives a hugely beneficial tax treatment in that country.

Less than 1 percent

 

That is why the European Commission will launch a thorough investigation into the arrangement Amazon and Luxembourg have struck. According to the researchers, Amazon pays less than 1 % tax on its European turnover in Luxembourg, which means it channels pretty much all of its European turnover through Luxembourg.

 

The country has also placed a limit on how much Amazon profit can be taxed, a deal that had already been put in place prior to Amazon's Luxembourgish arrival.

 

Sensitive matter

 

It is not the first time Amazon has received flak for the tax benefits it seems to abuse, with criticism coming from France and the United States among others. The company claims it pays all the necessary taxes.

 

It is a highly sensitive matter to investigate Luxembourg-based companies as Jean-Claude Juncker was prime minister in Luxembourg and will now head the European Commission.

 

It has already researched Apple in Ireland and Starbucks in the Netherlands in an attempt to halt this type of system.

Questions or comments? Please feel free to contact the editors


Rocket Internet wants to go public with Home24

19/01/2018

Rocket Internet wants to go public with its furniture web shop Home24 in the summer. During the next few months, it will work tirelessly to improve the web shop’s results.

Carrefour buys stake in Showroomprivé

12/01/2018

Carrefour has obtained a 17 % minority stake in flash sale seller Showroomprivé with the intent of increasing its digital and non-food reach. Former shareholder Conforama did suffer a loss.

Will free home delivery disappear?

15/12/2017

A growing number of online orders also brings additional pressure on the logistical industry. Free home delivery can no longer be maintained according to research company ECC Köln. More flexible options should be installed.

Amazon brings its private labels to Europe

14/12/2017

After it introduced Amazon Prime to an increased number of European markets, Amazon is now bringing in its own FMCG private labels. Over the past few weeks, the online department store launched several private label products in Europe and it has plans for even more. 

Amazon Echo is now available in the Benelux

11/12/2017

Amazon announced it will ship its smart speaker Amazon Echo to another 28 countries, including Belgium and the Netherlands. Its own music streaming service will also get a local launch.

Luxury manufacturers can block retailers from selling on Amazon

07/12/2017

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon. The European Court of Justice has ruled on the matter after cosmetics manufacturer Coty filed a complaint.

Back to top