Nike failed to topple a European Union decision to probe its tax affairs amid a crackdown on allegedly unfair fiscal deals for big companies, reported Bloomberg.
The European Commission complied with procedural rules when it decided to scrutinize the sportswear giant, the EU’s General Court ruled on Wednesday, July 14, dismissing Nike’s appeal.
Margrethe Vestager, the EU’s competition commissioner, has used the bloc’s tough state-aid rules to attack special treatment doled out by member states to multinationals, including Apple, Amazon, and Starbucks She’s since suffered a couple of big setbacks. Both Amazon and Apple won their appeals to topple tax-payback demands, including a record €13 billion (US$15 billion) order for the iPhone maker.
Wednesday’s court decision follows the commission’s 2019 opening of a probe into whether so-called tax rulings by the Netherlands may have given Nike an unfair advantage over its competitors. The company challenged the move, claiming it was premature and based on insufficient evidence. Wednesday’s ruling means that the investigation will continue to run its course.
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