Apple lost its appeal to avoid paying €13 billion ($14.4 billion) in taxes after Europe’s top court, the European Court of Justice (ECJ), upheld a 2016 European Commission ruling. The Commission had found that Ireland gave Apple illegal state aid by offering favourable tax treatment for over two decades. The ECJ ruling concludes the long-standing legal battle, forcing Apple to forfeit the money held in escrow.
In addition, the court also upheld a €2.4 billion ($2.6 billion) fine against Google, originally imposed by the European Commission in 2017. Google was accused of abusing its dominance in online search by giving preferential treatment to its own price comparison shopping service. Both rulings highlight the EU’s increasing efforts to curb the influence of Big Tech companies.
Key Points:
- Apple owes €13 billion in back taxes to Ireland after losing its appeal.
- The European Court of Justice sided with the European Commission’s 2016 ruling that Apple received illegal tax benefits.
- Apple stated it was disappointed with the decision, arguing it paid all taxes owed, including $20 billion in the U.S. on the same profits.
- Google was fined €2.4 billion for favouring its own services over rivals in search results, with its appeal also dismissed.
- Both rulings underscore the EU’s tough stance on regulating Big Tech and enforcing fair competition.
These rulings are final, and neither Apple nor Google can further appeal the decisions.
