The EU is launching an investigation into Amazon's tax practices

The EU is launching an investigation into Amazon's tax practices
(Image credit: David McNew/Getty Images)

The European Union's executive commission is launching a formal investigation into Amazon's tax relationship with Luxembourg. Brussels alleges that Luxembourg offered Amazon a preferential tax rate. Both Amazon and Luxembourg, however, have denied that Amazon is receiving special treatment.

The investigation, which the EU opened Tuesday, will decide whether Amazon is "paying its dues on profits made across the 28-nation bloc," The Associated Press reports. The EU is already investigating Apple and Starbucks for similar tax concerns in other countries.

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Meghan DeMaria

Meghan DeMaria is a staff writer at TheWeek.com. She has previously worked for USA Today and Marie Claire.