The triumphant Naboo victory over the Trade Federation felt great in Star Wars: Episode I – The Phantom Menace, but it turns out George Lucas rewrote that victory only three years later. The Trade Federation invasion of Naboo was a huge surprise to the galaxy, to the point where the Galactic Senate was able to be convinced not to believe it. In the end, however, an alliance between the humans of Naboo and the Gungan forces were able to fight off the Federation, which was to be punished in the Senate.

The end of the movie even involves the Trade Federation’s officials being shuttled off Naboo, with Captain Panaka stating plainly “I think you can kiss your Trade franchise goodbye.” Nute Gunray and the rest of the Federation will have to testify in the courts, and everyone’s certain they will lose their business. In the very next movie, however, one specific line reverses all of this, and proves a significant point about the Galactic Republic and its corruption.

Attack Of The Clones Revealed The Villains Never Faced Any Consequences

Nute Gunray Walked Free From His Trials

In Star Wars canon, Nute Gunray did indeed go to trial for his actions in The Phantom Menace. It wasn’t until Star Wars: Episode II – Attack of the Clones, however, that the outcome of those trials was revealed. In the Naboo throne room scene, characters discuss the Separatist crisis and how Padmé is dealing with it. During the conversation, governor Sio Bibble says this line:

It’s outrageous! After four trials in the Supreme Court, Nute Gunray is still the viceroy of the Trade Federation! I feel the Senate is powerless to resolve this crisis.

Naboo was freed from the Federation in the first movie, but the bad guys were never punished. In fact, Nute Gunray appears in the next two Star Wars movies and in Star Wars: The Clone Wars, cementing his loss on Naboo as negligible. This is on top of every other way that the bad guys won; Palpatine had become chancellor, Maul was replaced almost instantly by Count Dooku, and the Trade Federation absolutely got away with it.

The Trade Federation’s Freedom Showed How Corrupt The Republic Had Become

The Galactic Government Did Nothing About The Invasion

The Galactic Republic’s lackluster response to the Trade Federation’s obvious crimes actually serves the story of the prequels in a genius way. It so clearly demonstrates that the issues facing the galaxy are systemic, ingrained in the corporate bureaucracy present at all levels of government. The Trade Federation gets away with it, because they’re a rich corporation with political sway. This seems to undermine the end of The Phantom Menace, but truly builds up the overall story of Star Wars in a much more subtle and profound way.