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What Amazon's $294M Bill Tells Others in EU's Sights

The regulators' decision gives insight on the use of intellectual property to shift profits.

European Union regulators sent a warning to any company using fees on intellectual property rights to shift profits away from the taxman—slapping Amazon.com Inc. with a 250 million-euro ($294 million) bill and giving Luxembourg another rap on the knuckles.

The EU took a dim view of a structure that allowed Amazon to slash its taxable profits in Europe over about a decade by channeling them to a tax-free unit located in Luxembourg that was meant to license the technology behind its web shopping platform.

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