US energy giant ExxonMobil is suing the European Union (EU) to block its new windfall tax on oil companies.
A windfall tax is imposed on firms that benefit from something for which they were not responsible.
Energy firms are getting more money for their oil and gas, partly due to supply concerns following Russia's invasion of Ukraine.
But Exxon has accused Brussels of exceeding its legal authority, calling the measure "counter-productive".
ExxonMobil reported quarterly profit of nearly $20 billion (£17.3 billion) in October.
The company, along with other major players in the oil and gas sector, have argued that a rift, however, would discourage investment.
• What is the windfall tax on oil and gas companies?
In September, European Commission head Ursula von der Leyen announced an emergency plan for major oil, gas and coal companies to pay a "crisis contribution" on their increased 2022 profits.
A 33% tax was announced on this year's profits - those profits were 20% higher than the average of the previous three years.
Exxon has also argued that the levy has undermined investor confidence in a challenge filed at the Luxembourg-based General Court of the European Union.
"Whether we invest here or not depends primarily on how attractive and globally competitive Europe will be," Exxon spokesman Casey Norton told Reuters news agency.
At an investor meeting earlier this month, ExxonMobil's chief financial officer estimated that the EU tax would cost the group "more than $2 billion".
The European Commission said it "takes note" of Exxon's lawsuit.
In a statement on Thursday, its spokeswoman said it would now be up to the General Court to decide on the matter.
"The Commission maintains that the measures under consideration are fully in line with EU law," Ariana Podesta said in a statement.
The European Union has been trying to wean itself off Russian energy in the wake of the Ukraine invasion, but that has left it scrambling for alternative sources.
EU ministers estimate they could raise €140bn (£123bn) from levies on non-gas electricity producers and suppliers who are making higher-than-usual profits from current levels of demand.
Source link bbc news
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