The European Union (EU) as a whole has a nominal gross domestic product (GDP) bigger than US’ by some $200 – $300 billion, which is approximately the GDP of Finland. Consequently, it looks forward to stimulating growth in every single member country through different policies and regulations, and it’s very reluctant to allow any form of economic imbalances to settle in their marketplace. The EU Commission has the role of monitoring the activities of all the business entities to limit the loopholes in the regulations. So, the law enforcing entity is analyzing closely American companies operating in the area and Amazon.com, Inc. (NASDAQ:AMZN) is also in the list, according to Bloomberg.
The fact that Amazon.com, Inc. (NASDAQ:AMZN)’s deeds are being inspected closely should not be a matter of concern as it is a normal procedure that has to be performed.
“The Commission is in its role to look after fair competition in the EU. It’s written in the treaty point number 2. The Commission is therefore allowed to focus on individual cases to make sure that has been those state aid and that’s what’s happening here,” Luxembourg Finance Minister Pierre Gramegna.
So, Amazon.com, Inc. (NASDAQ:AMZN) could have benefited from lower taxes provided by the Luxembourg authorities and this has to be analyzed to get a better understanding of the situation. Up to this point, there are no concrete facts that could indicate signs of wrongdoings and Luxembourg officials state that they did not intend to favor imbalanced competition.
“We now know that the Commission wants to look more deeply into the matter and is a normal thing that if there are doubts on the side of the Commission we will continue to provide all the necessary information and we are quite confident that we have respected all the rules of the OECD,” claimed Pierre Gramegna.
Amazon.com, Inc. (NASDAQ:AMZN)’s case files will be piled by the Commission along with Apple Inc. (NASDAQ:AAPL)’s and Google Inc (NASDAQ:GOOGL)’s until there’s no doubt as to what verdict to give. However, unlike the latter companies, which are just under investigation, Jeff Bezos’ business is under formal probe and if it will be proven that Amazon.com, Inc. (NASDAQ:AMZN)’s accord with Luxembourg somehow breaches the current law, there could be fines administered to the e-commerce mogul.
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