Italian tax police searched Amazon’s Milan headquarters and the residences of seven managers on Thursday. The probe examines whether Amazon maintained an undisclosed permanent establishment in Italy from 2019 to 2024. Investigators allege this structure allowed the company to avoid higher domestic tax obligations.
The regulatory scrutiny follows a notable decline in Amazon's stock price. Investors expressed concern after the company announced a $200 billion capital expenditure plan for 2026. This spending targets infrastructure for artificial intelligence and Amazon's satellite internet project.