Starbucks (NASDAQ:SBUX) and a Fiat Chrysler Automobiles NV (NYSE:FCAU) unit must each pay as much as 30mln euros ($34mln) in back taxes after the European Union ruled they benefited from illegal tax deals with the Dutch and Luxembourg governments.
The decision was made by European Competition Commissioner Margrethe Vestager.
The move forms part of a crackdown by regulators worldwide against tax avoidance.
The Commission said Starbucks had benefited from a tax ruling from Dutch authorities in 2008 and Fiat from a ruling in Luxembourg in 2012.
“Tax rulings that artificially reduce a company’s tax burden are not in line with EU state aid rules. They are illegal,” Vestager said in an e-mailed statement.
“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,” she added.
The EU decision, wrapping up two of five tax investigations opened by EU regulators in recent months, now sets up a showdown with Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN), which are also embroiled in the two-year-long tax probe.
All companies have denied receiving special treatment, and the governments have denied giving it.
Vestager said that Fiat's Luxembourg unit paid "not even" 0.4 million euros in corporate tax last year and Starbucks' Dutch subsidiary less than 0.6 million euros.
Shares of Starbucks were trading down 0.3% at $60.68 at 9:38 a.m. in New York.