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The European Commission has opened an investigation into Nike's tax arrangements in the Netherlands, claiming that they may have given the US sportswear giant an unfair advantage.
The commission said that Dutch authorities had issued five tax rulings from 2006 to 2015, two of which are still in force, endorsing a method to calculate the royalty to two Nike entities based in the Netherlands.
It said it was concerned that the royalty payments endorsed by the rulings "may not reflect economic reality".
EU Competition Commissioner Margrethe Vestager said: "Member states should not allow companies to set up complex structures that unduly reduce their taxable profits and give them an unfair advantage over competitors."
The Dutch government said that it would cooperate with the investigation.
Justin Gallegos becomes the first athlete with cerebral palsy to sign a professional contract with Nike.
Nike has said it is "deeply concerned" by rape allegations against footballer Cristiano Ronaldo.
The US sportswear giant - which has a contract worth a reported $1bn (£768m) with Ronaldo - said it would "continue to closely monitor the situation", the Associated Press reports.
EA Sports, which also has a contract with Ronaldo, made similar comments.
Ronaldo, 33, has "firmly" denied assaulting Kathryn Mayorga at a Las Vegas hotel in 2009.