Amazon’s tax victory could raise its bills

U.S. tech giants face an awkward reality with their recent tax victories in Europe: The less they end up owing for past profits, the more they may be taxed on future ones.

On Wednesday, the European General Court annulled a 2017 decision that ordered U.S. e-commerce giant Amazon.com to pay €250 million, equivalent to about $304 million, in additional taxes to Luxembourg. Last July the court similarly overturned Apple’s €13 billion bill for Irish back taxes on years’ worth of international earnings.

It won’t be the final word: The European Commission is likely to appeal both annulments to a higher court. Even more important, the decisions will feed European conviction that changes to the rules are necessary to ensure digital giants’ international profits are taxed at levels closer to what the companies pay in the U.S.