As Europe launches an investigation into several member states and several major conglomerates about their tax relationship, reports say the probe has widened to include Amazon and its operations in Luxembourg.
Last June, the European Commission launched an investigation into Apple and its relationship with Ireland. The probe is looking at whether tax breaks offered by the nation give companies and unfair advantage or violate state aid rules.
Following that investigation launch, reports emerged that the Commission was also looking into Starbucks’ operations in the Netherlands and Fiat Finance and Trade’s operations in Luxembourg for similar reasons
While reports say the Commission is focused on the companies’ relationships with these nations, and not just the companies themselves, the firms could be burdened with fines or other sanctions should the Commission find that these tax practices distort competition across the EU.
Reports emerged late last week that Luxembourg’s relationship with Microsoft and McDonald’s was also in question.
As the European Commission’s competition arm is set for an overhaul following the departure of EU Commissioner Joaquin Almunia, experts are questioning the future of EU competition enforcement. Almunia is widely seen as having introduced an era of activism within the authority, as the competition watchdog uses its antitrust powers for cases that are not solely competition-related – such a companies’ tax relationships with EU nations.
Full content: ZDNet
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI