Commission Decision (EU) 2018/859 of 4 October 2017 on State aid SA.38944 (2014/C) (ex 2014/NN) implemented by Luxembourg to Amazon (notified under document C(2017) 6740) (Text with EEA relevance.)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 108(2) thereof,

Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof,

Having called on interested parties to submit their comments pursuant to the provisions cited above⁽¹⁾ and having regard to their comments,

Whereas:

HAS ADOPTED THIS DECISION:

Article 1

The tax ruling of 6 November 2003, by virtue of which Luxembourg endorsed a transfer pricing arrangement proposed by Amazon.com, Inc. that allowed Amazon EU S.á.r.l. to assess its corporate income tax liability in Luxembourg from 2006 to 2014 and the subsequent acceptance of the yearly corporate income tax declaration based thereon constitutes aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union that is incompatible with the internal market and that was unlawfully put into effect by Luxembourg in breach of Article 108(3) of the Treaty on the Functioning of the European Union.

Article 2

1.

Luxembourg shall recover the incompatible and unlawful aid referred to in Article 1 from Amazon EU S.á r.l.

2.

Any sums that remain unrecoverable from Amazon EU S.á r.l., following the recovery described in the preceding paragraph, shall be recovered from the Amazon group.

3.

The sums to be recovered shall bear interest from the date on which they were put at the disposal of the beneficiaries until their actual recovery.

4.

The interest shall be calculated on a compound basis in accordance with Chapter V of Regulation (EC) No 794/2004.

Article 3

1.

Recovery of the aid granted referred to in Article 1 shall be immediate and effective.

2.

Luxembourg shall ensure that this Decision is implemented within four months following its date of notification.

Article 4

1.

Within two months following notification of this decision, Luxembourg shall submit information regarding the methodology used to calculate the exact amount of aid.

2.

Luxembourg shall keep the Commission informed of the progress of the national measures taken to implement this Decision until recovery of the aid granted referred to in Article 1 has been completed. It shall immediately submit, on simple request by the Commission, information on the measures already taken and planned to comply with this Decision.