EU antitrust regulators are likely to launch a formal investigation into McDonald’s tax deal with Luxembourg, two people with knowledge of the matter said on Wednesday, widening the bloc’s crackdown on corporate tax avoidance.
European Competition Commissioner Margrethe Vestager could announce the investigation as early as Thursday, the sources said, following on the heels of other recent cases, including deals between Luxembourg and carmaker Fiat and online retailer Amazon.com.
Labor unions and the charity War on Want, have accused McDonald’s of avoiding around 1 billion euros in tax between 2009 and 2013 by routing revenue through a Luxembourg unit and have called for EU regulators to take action against the U.S. fast-food chain.
McDonald’s, in a statement, said it had not been told of any EU investigation and that it complies with all tax laws and rules in Europe.
“From 2010-2014, the McDonald’s companies paid more than $2.1 billion just in corporate taxes in the European Union, with an average tax rate of almost 27 percent,” the company said.
“Additionally, we pay social, real estate and other taxes. Our independent franchisees, who own and operate approximately 75 percent of our restaurants in Europe, also pay corporate tax and many other taxes.”
The EU competition enforcer has been considering evidence regarding McDonald’s for some time, said a third source familiar with the issue.
Full content: The Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile Faces Class-Action Lawsuit Over Sprint Merger After Appeal Denied
May 16, 2024 by
CPI
Google Faces Backlash Over Introduction of AI-Generated Summaries in Searches
May 16, 2024 by
CPI
CMA Launches Phase 2 Probe into AlphaTheta’s Acquisition of Serato
May 16, 2024 by
CPI
NFL Executive Escapes Testifying in High-Stakes Trial Over Televised Games
May 16, 2024 by
CPI
EU Consumers Lodge Complaint Against Chinese Retailer Temu Over Content Rules Breach
May 16, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI