The Allen & Overy Luxembourg podcast

State aid and transfer pricing: Fiat and Starbucks decisions

May 18, 2020

The European Commission has been using state aid law to challenge advance pricing agreements (APAs) given by some member states to multinationals over the last few years.

In this context, on 24 September 2019, the General Court of the European Union has rendered its first individual decisions, i.e. the Fiat and the Starbucks decisions: while the Court considered that the APA granted by Luxembourg to Fiat constituted a selective advantage, it has on the contrary annulled the Commission's decision that the APA granted by the Netherlands to Starbucks was unlawful state aid.

In this podcast Sophie Balliet (Counsel, Tax) and Jean Schaffner (Partner, Tax) of Allen & Overy Luxembourg will discuss both decisions and their likely impact.