The European Commission’s new president is on the defensive as allegations mount that he has a conflict of interest in the watchdog’s investigation into member states’ tax breaks to foreign companies.
Jean Claude Juncker, which began his position as European Commission President on November 1, says there is no conflict of interest in the case and has denied allegations that he encouraged so-called “sweetheart” deals with foreign companies when he was Prime Minister of Luxembourg. Luxembourg is one of the nations under investigation by the Commission as authorities examine whether those tax breaks constituted illegal state aid.
Just days after he took office, a slew of documents obtained by investigative journalists allegedly found major corporations like Pepsi and Ikea had inked deals with Luxembourg to save billions of dollars in taxes.
Juncker did not comment on the documents at the time. Luxembourg’s current Prime Minister, Xavier Buttel, stressed that all tax agreements were legal; now, Juncker is reiterating those claims.
The Commission’s competition arm is investigating Luxembourg, Irelad and Malta for their tax relationships with foreign companies. Critics say this constitutes illegal state aid and gives those firms an unfair financial advantage over their competitors. Companies have similarly come under fire for recent inversion mergers, in which the firms merge with another company for the intent of relocating their tax bracket abroad to benefit from lower tariffs.
Full content: BBC
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Hess Shareholders Approve $53 Billion Merger with Chevron
May 28, 2024 by
CPI
EU Regulators Engage with Telegram as App Nears Critical Usage Threshold
May 28, 2024 by
CPI
EEX Offers Remedies to Address EU Antitrust Concerns Over Nasdaq Deal
May 28, 2024 by
CPI
BRG Expands European Competition Practice with New Expert Team in Brussels
May 28, 2024 by
CPI
UK Law Empowers Regulators to Fine Big Tech Without Court Approval
May 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Merger Guidelines Retrospective
May 21, 2024 by
CPI
Mergers of Complements
May 21, 2024 by
CPI
Personality Traits, Private Equity, and Merger Analysis
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Lessons in the Importance of Incipiency, Modern Economics, and Monopsony
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Sharpening Merger Analysis
May 21, 2024 by
CPI