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The European Commission, which made the
announcement on Thursday, opened its investigation in October,
making the U.S. company the latest global firm to have its tax
practices assessed by the EU.
The investigation focuses on whether Luxembourg broke EU state
aid rules by agreeing a deal which allows Amazon to operate
almost tax-free in Europe.
The Commission is also investigating whether a unit of Italian
carmaker Fiat benefited from unfair state aid to the detriment
of competitors as a result of its tax arrangements with the tiny
duchy.
It is separately probing deals between Apple and Ireland and
Starbucks and the Netherlands.
Luxembourg has faced international criticism following media
revelations in November based on leaked documents -- dubbed "LuxLeaks"
-- that detailed its role in helping companies channel profits
through the country and pay low tax rates rather than higher
rates in states where they did more business.
The leaks put pressure on European Commission President
Jean-Claude Juncker, former long-time prime minister of
Luxembourg, to explain his role in the country's tax policies.
Juncker has defended the country's tax practices, but is now
promoting a plan for a common EU system to share tax
information.
(Reporting by Julia Fioretti; Editing by Philip Blenkinsop and
Mark Potter)
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