By Jonathan Davies

The tax deal between Amazon and Luxembourg probably amounted to "state aid", according to the preliminary findings of an investigation by the European Commission.

State aid is illegal under EU law.

The European Commission last an investigation into the arrangement between the online retail giant and Luxembourg last year, suggesting the deal broke EU rules.

The Commission said that its "preliminary view is that the tax ruling... by Luxembourg in favour of Amazon constitutes state aid."

Last year, Amazon said "received no special tax treatment from Luxembourg".

The its early findings, the European Commission suggested that Luxembourg didn't look into the deal in enough detail.

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