The European Union's top court decided Thursday that Amazon does not have to pay €250 million ($273 million) in back taxes to Luxembourg, effectively ending the EU's war on sweetheart tax agreements for big corporations.
"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," according to a statement from the European Union's Court of Justice.
Its ruling is final.
"We applaud the Court's decision, which confirms that Amazon complied with all applicable laws and received no preferential treatment." "We look forward to continuing to focus on delivering for our customers across Europe," an Amazon representative stated.
Oxfam's EU tax specialist, Chiara Putaturo, criticized the decision.
"Amazon got an early Christmas present this year, as the company dodged its decade-old tax bill to Luxembourg and can continue to do so," she went on to say.
"This is why the EU must implement genuine tax reforms." It may begin by not turning a blind eye to tax havens within its boundaries that allow corporations to avoid paying taxes through vacant offices."
The EU's court setback underlines Margrethe Vestager's, the EU's antitrust director's, uneven track record in defending tax judgments against legal challenges.
Earlier this month, the French utility Engie won its appeal against an EU decision to pay Luxembourg €120 million in back taxes.