(Bloomberg) --
The European Union's highest court said a system in Hungary that levied a progressive tax on phone companies and retailers including Vodafone Group Plc and Tesco Plc was in line with EU law.
The EU Court of Justice in Luxembourg backed the Hungarian system in a ruling on Tuesday.
Local courts sought the EU judges' view on separate disputes involving local units of Vodafone and Tesco, that question whether a progressive tax rate, which targets mainly the bigger multinational companies, is in line with the bloc's rules.
An adviser to the EU court in separate opinions last year said that different taxation from the use of a progressive tax rate doesn't violate the bloc's rules on state aid law or the freedom of establishment.
The cases are: C‑323/18, Tesco-Global Aruhazak Zrt. v. Nemzeti Ado- es Vamhivatal Fellebbviteli Igazgatosaga, and C‑75/18, Vodafone Magyarorszag Mobil Tavkoezlesi Zrt. v. Nemzeti Ado- es Vamhivatal Fellebbviteli Igazgatosaga.
To contact the reporter on this story: Stephanie Bodoni in Luxembourg at sbodoni@bloomberg.net
To contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net, Peter Chapman
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