Exxon logoImage source, Reuters

The EU's windfall tax on oil companies is being sued by ExxonMobil.

Firms are hit with a windfall tax if they benefited from something that wasn't their responsibility.

Due to supply concerns, energy firms are getting more money for their oil and gas.

Exxon said the measure was counter-productive.

In October, ExxonMobil made a profit of almost $20 billion.

In September, European Commission chief Ursula von der Leyen announced the plan for major oil, gas and coal companies to pay a crisis contribution.

The tax on this year's profits was more than twenty percent higher than the average for the previous three years.

In a challenge filed at the EU's Luxembourg-based General Court, Exxon argued that the levy discouraged investments and undermined investor confidence.

Exxon has not made a decision on whether or not to invest in Europe, according to the news agency.

In an investor meeting earlier this month, ExxonMobil's CFO estimated that the EU tax would cost the group $2 billion.

It will be up to the General Court to rule on the case after the European Commission took note of Exxon's legal application.

The EU is trying to wean itself off of Russian energy but that has left it scrambling for more expensive sources.

EU ministers estimate that they can raise 140 billion from the levies on non-gas electricity producers and suppliers.

  • European Union
  • Exxon Mobil