Amazon has triumphed in a £215m tax fight at the European Union’s top court.
The ecommerce business had been accused of striking a sweetheart deal with Luxembourg, where it avoided paying tax on 75% of its EU profits.
The European Commission was prompted to appeal after lower court judges claimed the deal was not unlawful.
However, the EU’s Court of Justice dismissed the claims on Thursday, insisting it had not proved the deal “was a state aid that was incompatible with the internal market”.
It said: “The Court of Justice confirms that the (European) Commission has not established that the tax ruling given to Amazon by Luxembourg was state aid that was incompatible with the (EU’s) internal market.”
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
A spokesperson for the etailer said: “We welcome the court’s ruling, which confirms that Amazon followed all applicable laws and received no special treatment.
“We look forward to continuing to focus on delivering for our customers across Europe.”
The decision, which cannot be appealed against, comes as EU competition chief Margrethe Vestager has battled against the special tax treatment seemingly granted to the giants in Silicon Valley.
It emerged earlier this year that Amazon’s UK arm paid £781m in direct taxes last year, despite sales hitting £24bn.
Click here to sign up to Retail Gazette‘s free daily email newsletter
