Online bookstore Amazon faces an investigation into its tax affairs in Europe after EU officials announced on Tuesday that they will probe whether the US firm breached competition law.
The European Commission says the set-up that the US firm has in place in Luxembourg could amount to a violation of the bloc’s anti-trust rules.
“The ruling we’re looking to in this case concerns Amazon’s subsidiary in Luxembourg, which records most of the group’s European profit,” said Joaquin Almunia, EU competition commissioner.
“Most European profits of amazon are recorded in Luxembourg, but are not taxed in this country,” he told journalists in Brussels.
Amazon’s European HQ is based in the tiny EU nation. It is accused of choosing that location to unfairly lighten its fiscal burden.
This EU investigation follows similar probes into the fiscal affairs of Apple and Starbucks, two other US multinationals.