Starbucks Image: Starbucks

The tax deals held by Starbucks and Fiat Chrysler in Europe are "illegal", the European Commission has ruled.

Starbucks had a tax deal in the Netherlands, while Fiat Chrysler held a similar deal in Luxembourg.

Both the Dutch and Luxembourg governments must recover between €20 million and £30m in back taxes from Starbucks and Fiat Chrysler respectively.

European competition commissioner Margrethe Vestager said: "This will remove the unfair competitive advantage they have enjoyed."

She added: "Tax rulings that artificially reduce a company's tax burden are not in line with EU state aid rules. They are illegal. I hope that, with today's decisions, this message will be heard by member state governments and companies alike.

"All companies, big or small, multinational or not, should pay their fair share of tax."

Starbucks is one of several multinational corporations accused of tax avoidance in the UK, and is the subject on further ongoing tax investigations.