Amazon wins EU court appeal over $300 million tax bill

European Union in 2017 ruled a tax deal between Amazon and the Luxembourg government was illegal and ordered Amazon to pay back the taxes. That's been reversed now.
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Judge's gavel
Judge's gavel
(Joe Raedle/Getty Images)

A European court ruled Wednesday that Amazon does not have to pay over $300 million in back taxes, annulling the European Commission's previous order.

The European Union's executive branch ordered Amazon to pay the price in 2017 after ruling that a tax deal between Amazon and the Luxembourg government was illegal and avoided taxes. Both Amazon and Luxembourg challenged the case with the General Court. 

The judge reviewing the case determined the commission didn’t prove "to the requisite legal standard that there was an undue reduction of the tax burden of a European subsidiary of the Amazon group," according to the Associated Press

Amazon said the court’s decision is “in line with our long-standing position that we followed all applicable laws and that Amazon received no special treatment. We’re pleased that the Court has made this clear, and we can continue to focus on delivering for our customers across Europe.”

The decision was a setback for European regulators tackling corporate tax avoidance, however, it can be appealed to the Union's highest court, the European Court of Justice.

The European Commission has cracked down on other companies as well, including  Apple and Starbucks.