As Paul explained, they are acting entirely legally by choosing to operate in the EU country with the lowest VAT rate. If you feel that's wrong, then the wrongness lies with EU tax law, not with those who obey it. It's no different from the fact that over half the "Fortune 500" companies in the US are incorporated in the state of Delaware, for precisely the same reason: they pay less tax that way, because Delaware has more favourable tax laws.
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