The EU General Court overrules the Commission’s decision which found that Luxembourg granted State aid to a big tech company (Amazon)

On 12 May 2021, the General Court ("GC") overruled the Commission's decision finding that Luxembourg granted State aid to Amazon. It found that the Commission had failed to demonstrate that the intra-group transfer price at issue deviated from an arm's length outcome and that Amazon's tax burden in Luxembourg had, as a result, been unduly reduced. Key takeaways The GC confirmed its previous findings – currently under appeal in the Fiat case – that the Commission may use an arm’s length principle as a 'tool' to assess applications of transfer pricing methods endorsed by individual tax rulings. In doing so, the Commission can refer to OECD guidelines. When determining whether the transfer price for a licence of a technology is in line with market conditions, the Commission cannot ignore

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Denis Waelbroeck, The EU General Court overrules the Commission’s decision which found that Luxembourg granted State aid to a big tech company (Amazon), 12 May 2021, e-Competitions May 2021, Art. N° 101200

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