The ruling is a blow to Competition Commissioner Vestager / Reuters
Amazon does not have to pay $303 million in back taxes in Luxembourg, after the European Union's General Court said the firm had not been given preferential treatment by Luxembourgish authorities.
The ruling is a blow to the European Commission and its competition chief, Margrethe Vestager.
The court decided Luxembourg did not give an "undue reduction of the tax burden" to Amazon Europe, as the Commission had accused.
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Meanwhile, French utilities firm Engie will be forced to pay $145.7 million in owed taxes to Luxembourg, after it was found the Grand Duchy had "artificially reduced" the amount the French firm must pay.
Amazon's arrangement, on the other hand, moved profits from its European arm to others in order to avoid tax on nearly three-quarters of its money made in Europe.
Vestager has a track record of using the EU's anti-state aid laws to examine how multinational tech giants such as Amazon and Apple are taxed.
She has successfully made Ireland, Luxembourg, the Netherlands and Belgium change their tax ruling practices.