Luxembourg (AFP) - An EU court on Tuesday annulled an order by Brussels that Starbucks pay 30 million euros to the Netherlands, saying regulators had failed to demonstrate it received illegal state aid.
In a
separate decision, however, the same court said Fiat must pay roughly the same
amount to Luxembourg, upholding a similar EU order from 2015.
The split
decision will be closely watched by Apple, which was ordered to repay Ireland
13 billion euros in 2016 in a blockbuster case that is also making its way
through EU courts.
The cases
can now be appealed at the EU's highest court, the European Court of Justice.
"The
general court annuls the commission's decision on the aid measure implemented
by the Netherlands in favour of Starbucks," the statement said.
"The
commission was unable to demonstrate the existence of an advantage in favour of
Starbucks," it added.
The cases
from 2015 were the first out of the gate in the crackdown by the EU's
anti-trust supremo Margarethe Vestager against member states that had sealed
sweetheart tax deals with multinationals.
In her
landmark rulings, Vestager said Dutch authorities must recoup unpaid taxes from
Starbucks because it illegally allowed an elaborate tax set-up that allowed it
to shift revenue abroad.
"I am
pleased that the European Commission's case on Starbucks against the
Netherlands on state aid has been clarified," Dutch secretary of state for
finance Menno Snel said in a statement.
"This
decision proves that the Dutch tax authorities treated Starbucks like any other
company, and no better or different," he added.
The
Starbucks and Fiat cases are dwarfed by the blockbuster order in 2016 that
Apple repay Ireland 13 billion euros.
That case
drew global attention, helping Vestager become the EU's highest-profile
official.
In the new
commission, she has been promoted to executive vice president and will
effectively become Europe's tech regulation czar, while still holding on to her
powerful anti-trust portfolio.
EU member
states such as Belgium, Ireland, Luxembourg and the Netherlands have attracted
multinationals over many years by offering extremely favourable tax deals to
generate jobs and investment.
The issue
hit close to home in 2014 with the LuxLeaks scandal which revealed that
European Commission President Jean-Claude Juncker's native Luxembourg gave
companies favourable tax deals while he was prime minister.
Luxembourg
has also been ordered by Brussels to recoup 250 million euros from Amazon and
120 million euros from French energy giant Engie.
The same
court handed the commission a first setback in 2019, when it threw out a tax
deal decision against Belgium, but mainly on procedural grounds. The
commission last week refiled the case.
The
commission is also investigating tax deals with Ikea and Nike in the
Netherlands. Brussels dropped a keenly-watched case against McDonald's.
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