Amazon has finally emerged victorious in a long-running state aid saga in the European Union. The European Commission confirmed on Thursday that it has closed its investigation into whether Luxembourg, where Amazon has its EU headquarters, had granted the tech giant "selective tax advantages". The outcome means that Amazon will not have to pay any unpaid taxes, marking a significant win for the company.

The case dates back almost a decade, with a major development coming in 2017 when the Commission concluded that Luxembourg had given Amazon illegal tax benefits worth €250 million. However, EU judges annulled the Commission's decision on appeal, leaving the investigation open but ultimately unresolved. The EU's decision to close the case now brings closure to a protracted dispute.

The Commission's decision to close the case was based on guidance provided by EU Courts. In a press release, the Commission stated that it has accepted that no tax rules were broken, effectively ending the investigation. This outcome is a significant departure from the Commission's stance in a similar case involving Apple, where the tech giant was ordered to pay $15 billion in back taxes.

The closure of the investigation is a significant victory for Amazon, which has consistently maintained that its tax arrangements with Luxembourg were legal and compliant with EU regulations. The company's win is also a blow to the European Commission's efforts to crack down on tax avoidance and ensure that multinational corporations pay their fair share of taxes.

The implications of this decision are far-reaching, with potential consequences for other multinational corporations operating in the EU. The Commission's decision may be seen as a signal that it is willing to accept that certain tax arrangements are legal, even if they appear to be advantageous to individual companies. This could embolden other companies to push for similar deals, potentially undermining the EU's efforts to create a level playing field for taxation.

As the EU continues to grapple with the complexities of taxation and state aid, this decision serves as a reminder of the ongoing challenges in ensuring that multinational corporations are held accountable for their tax obligations. While Amazon may have won this battle, the war over taxation and corporate accountability is far from over.