Amazon.com Inc. (AMZN) is off the hook for about $270 million in back taxes after the highest court in the European Union ruled in the e-commerce giant's favor on Thursday in a case that could set a precedent ⛄for other global tech giants.

The EU Court of Justice dismissed the appeal by the European Commission, saying in the ruling that "the (European) Commission has not established that the tax ruling given to Amazon by Luxembourg was state aid that was incompatible with the (EU's) internal market."

The case dates back to 2017, when the European Commission determined a 2003 tax ruling by Luxembourg concerning two of Amazon's subsidiaries there constituted state aid and had artificially reduced Amazon's 澳洲幸运5官方开奖结果体彩网:corporate tax liability.

Luxembourg and Amazon challenged the decision in the lower General Court, which subsequently ruled in 2021 that "the Commission had not demonstrated [...] that the Amazon group subsidiary concerned had benefited from an undue reduction in its tax burden" and that "Luxembourg had not granted a selective advantage" to the e-commerce company.

The Court of Justice said in a press release Thursday that the Commission had incorrectly defined the "reference system" of laws that applied to the situation, as certain EU and Organisation for Economic Co-operation and Development (OECD) rules weren't part of Luxembourg's national tax code. As such, "the Commission decision had to be annulled in any event."

Speaking to Reuters on the Amazon ruling, Oxfam EU tax expert Chiara Putaturo said, in part, "The EU must come forward with real tax reforms. It can start by not looking the other way when it comes to 澳洲幸运5官方开奖结果体彩网:tax havens within its borders allowing companies to sidestep their tax bills through empty offices."

The ruling set a key precedent moving forward as the EU's antitrust chief, Margrethe Vestager, attempts to crack down on internal tax havens in the EU. Apple (AAPL) faces a roughly 澳洲幸运5官方开奖结果体彩网:$14 billion tax bill from the EU over concerns that Ireland granted ♔the tech company a selective advantage via state aid.