Europe’s highest court has ruled against Apple and Google in two legal battles, mandating that the tech giants pay hefty fines in an ongoing crackdown on corporate dominance.
Apple has been ordered to repay EUR 13 billion (USD 14.3 billion) in back taxes to Ireland, a decision that upholds a 2016 ruling by the European Commission. The EU Court of Justice confirmed the original finding that Apple had benefited from illegal state aid through preferential tax rulings from the Irish government, which allowed it to reduce its tax rate to as little as 0.005% in 2014.
After Apple’s successful 2020 appeal overturned the initial judgment, the case was escalated to the EU’s top court. On 10 September, the court made its final decision: “Ireland granted Apple unlawful aid, which Ireland is required to recover.”
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An Apple spokesperson responded, emphasizing that the dispute was not about the amount of tax owed, but which country had the right to collect it. “We pay all the taxes we owe everywhere we operate, and no special treatment was ever granted,” the representative commented.
Google faced defeat in a separate case in the EU Court of Justice. The court dismissed Google’s appeal against a EUR 2.4 billion fine imposed in 2017 by the European Commission for abusing its online price comparison market dominance. This is one of three significant fines the company has incurred in Europe, with total penalties now exceeding EUR 8 billion.
A Google spokesperson expressed disappointment with the ruling, which cannot be appealed further.
Margrethe Vestager, the EU’s Antitrust Chief, who has led the charge against these major tech companies, celebrated the rulings on social media platform, X, describing the outcome as a “a huge win for European citizens and tax justice.”
Both cases are seen as a significant triumph for the European Union as it continues to challenge the influence of titan technology firms on the global stage.
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