On 26 February 2018, the European Commission (EC) published the text of its October 2017 decision against Luxembourg (which found that Luxembourg had, in the EC's view, granted illegal state aid to Amazon).

On the same day it was revealed that Luxembourg had (in December 2017) challenged the EC's original decision. Luxembourg's arguments, in broad summary, include that:

• the EC had failed to establish the existence of an advantage in favour of Amazon EU S.à r.l. (OpCo). In particular the EC erred in finding that the royalty fee actually paid by OpCo differs from the arm’s-length price

• the EC had failed to establish that the Luxembourg tax ruling is selective in nature

• the EC had undertaken covert fiscal harmonisation by imposing its own interpretation of the “right” transfer pricing to apply in this case, infringing the exclusive competence of the member states in the area of direct taxation.

The EC's October 2017 decision can be viewed here.

Luxembourg's challenge can be viewed here.