Under Pressure In Europe, Amazon Changes Tax Strategy

03:43

May 25, 2015

Amazon.com founder and CEO Jeff Bezos presents the company's first smartphone, the Fire Phone, on June 18, 2014 in Seattle, Washington. The much-anticipated device is available for pre-order today and is available exclusively with AT&T service. (David Ryder/Getty Images)

Amazon is no longer routing its European sales through the low-tax country of Luxembourg, in an effort to cut costs. Instead the American company will pay taxes in individual European countries.

The move comes amid numerous EU investigations into how companies, including Amazon, pay their taxes on the continent.

As Al Jazeera's Ali Velshi tells Here & Now's Lisa Mullins, it could significantly increase Amazon's tax bill.

Guest

Ali Velshi, host of Real Money on Al Jazeera America. He tweets @AliVelshi.

This segment aired on May 25, 2015.