(Bloomberg) -- The European Union has ended its state aid probe over McDonald’s Corp.'s (NYSE:MCD) controversial tax affairs with Luxembourg, according to three people familiar with the matter.
McDonald’s may have escaped the fate of other U.S. giants ordered to repay EU nations back taxes deemed to be be unfair state aid, said the people, who asked not to be named because the decision isn’t yet public. EU officials have often described the McDonald’s case as challenging because they had to take account of double-tax and other international treaties.
EU Competition Commissioner Margrethe Vestager plans to give a press conference at 11:30 am in Brussels on Wednesday to announce a state aid matter. The EU’s press office didn’t give details on the announcement. A McDonald’s representative didn’t immediately respond to a request for comment.
A tax announcement comes just over two years after Apple Inc (NASDAQ:AAPL). was handed a record multibillion-euro tax bill over its revenue arrangements in Ireland. Luxembourg has already faced three negative decisions amid the EU crackdown, being ordered in June to recoup 120 million euros ($141 million) from French energy utility Engie SA and in 2017, to reclaim 250 million euros from Amazon.com Inc (NASDAQ:AMZN). over selective tax benefits granted to the U.S. tech giant.
Vestager says she is standing up for fairness by cracking down on special tax deals that benefit only a select few companies. At stake are billions of euros that multinational companies have squirreled away in tax havens, out of the reach of authorities in the countries where they make most of their sales.