ONLINE retailer Amazon has become the latest firm to face a probe by the European Commission (EC) to see whether its tax affairs comply with state aid rules. The EC said it will look at a 2003 tax agreement between Luxembourg and the retailer because it said most of its European profits are recorded in Luxembourg but not taxed there. The EC suspects the Luxembourg agreement amounts to a distortion of competition. The US firm said: "Amazon has received no special tax treatment from Luxembourg. We are subject to the same tax laws as other companies operating here." The EC said it will look at the way an Amazon subsidiary in Luxembourg pays a tax deductible royalty to a limited liability partnership in the state that is not subject to corporation tax.