EU investigates alleged sweet tax deal for McDonald's

BRUSSELS (AP) — The European Union is investigating allegations that fast food giant McDonald's received a sweet tax deal from Luxembourg, at a time the EU is trying to come down hard on preferential treatment for multinationals.

EU antitrust Commissioner Margrethe Vestager announced Thursday that the Luxembourg deal may have breached state aid rules, which seek to keep a level playing field for businesses across the 28 member states.

Vestager said that "a tax ruling that agrees to McDonald's paying no tax on their European royalties either in Luxembourg or in the U.S. has to be looked at very carefully."

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