Europe

Was it a special deal?

Last year the European Commission opened an in-depth investigation into Amazon’s Luxembourg tax arrangements, which may be illegal. Amazon funnels its European revenues through a complex transfer pricing set-up in the duchy, effectively resulting in an especially low tax rate (see also: Skype). This nets Luxembourg a lot for a country that size, but countries in the rest of the EU get way less than they should. On Friday the Commission published a public version (PDF) of its decision to launch the investigation, detailing why it thinks the 2003 arrangement represented a special deal for the company, making it illegal state aid. If the investigation finds as much, Amazon may have to pay a whole bunch of back taxes.

Precious airwaves

When it comes to freeing up the valuable 700MHz airwaves for mobile broadband, Europe’s wheels are slowly turning. Last September, former trade commissioner Pascal Lamy recommended that the spectrum should be made available for mobile broadband use by 2020 — it is currently used for TV and wireless mics in the E.U., while the U.S. and Asia already use it for 4G. Now the European Commission has launched a consultation on the Lamy report, seeking public opinion with an April 12th deadline. The U.K. recently announced plans to free up 700MHz by 2022. The spectrum is valuable because low frequencies carry data over long distances and are good for in-building coverage.

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