European Union Gazettes EC Decision on State Aid to Luxembourg-Based Amazon Subsidiary Under APA

The European Union Official Gazette Nov. 28 published the European Commission (EC) Decision No. 2025/2405 on State Aid Case No. SA.38944, concerning state aid to a Luxembourg-based Amazon subsidiary under an advance pricing arrangement (APA). The taxpayer, a Luxembourg-based Amazon subsidiary, operated a European retail and service business. The EC previously opened an investigation against Luxembourg concerning six doubts related to the arm’s length principle, including transfer pricing documentation, royalty calculation, functional complexity, remuneration level, and ruling duration. The General Court and the Court of Justice found that the EC failed to show that the APA conferred an advantage under ...