Amazon's Major Victory in EU Court: What Does It Mean for Global Tax Battles?

Amazon.com Inc AMZN triumphed in a legal battle at the European Union's top court, overturning a €250 million ($272 million) bill related to alleged illegal tax breaks. 

In a definitive ruling, the EU's Court of Justice dismissed the European Commission's appeal, stating that EU regulators failed to prove that Amazon's tax arrangement with Luxembourg constituted incompatible state aid with the internal market, Bloomberg reports.

This decision marks a significant setback for EU Competition Chief Margrethe Vestager, who has been at the forefront of a decade-long crusade against preferential tax treatments granted to large corporations by EU member states. 

Also Read: Microsoft and Google Comply with EU's New Tech Regulations, Aiming for Easier User Access Across Services

Vestager previously issued a record €13 billion tax order to Apple Inc AAPL, a case now contingent on a final ruling from the same court. 

Recently, a court advisor recommended overturning Apple's prior court victory, challenging the company's earlier success.

The European Commission has experienced varying outcomes in the bloc's courts as companies contest their tax bills. 

However, the courts have generally supported the Commission's use of state-aid laws to target unfair tax advantages. 

Price Action: AMZN shares traded higher by 0.58% at $149.71 premarket on the last check Thursday.