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Amazon and McDonald's to be Next for EU State Aid Investigations

22 September 2016

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Proposed Changes

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European Union-Luxembourg-United States

In a recent interview, EU Commissioner for Competition Margrethe Vestager discussed the pending State aid investigations. According to Vestager, the next companies in the pipeline are Amazon ({News-2015-01-16/A/5- previous coverage}) and McDonald's ({News-2016-06-09/A/4- previous coverage}), which are both involved in investigations concerning Luxembourg tax rulings. In both of the rulings, Luxembourg accepted royalty structures that allowed minimal taxation on billions in revenue from the companies' European operations. In the McDonald's case, Luxembourg will be reportedly required to recover up to EUR 500 million in back taxes. In the Amazon case, the potential figure is uncertain, but may be as high...