In 2018, the European Commission (EC) concluded two more investigations into whether the tax ruling practices of Member States breached European Union (EU) State aid rules: the first, a finding of unlawful State aid resulting from tax rulings by Luxembourg in favor of Engie; the second, a rare finding of no aid in respect of the treatment by Luxembourg of McDonald’s under the Luxembourg-U.S. double taxation treaty. These decisions are discussed below.

Read this chapter in Shearman & Sterling’s 2019 Antitrust Annual Report, “The Increasing Link Drawn by Regulators Between State Aid & Taxation Systems.”