The European Court of Justice (ECJ) has ruled against tech giants Apple and Google in two separate cases, fining them €13 billion and €2.4 billion, respectively. The judgments are seen as significant victories for the European Union in its efforts to regulate big tech companies. In the case against Apple, the company has been ordered to pay €13 billion in back taxes to Ireland. Meanwhile, Google has been fined €2.4 billion for abusing its market power in search services.
Apple case: Illegal tax benefits in Ireland
The case against Apple dates back to 2016, when the European Commission accused Ireland of granting the tech company illegal state aid by allowing it to pay a tax rate of under 1%. According to the Commission, the arrangement between Ireland and Apple gave the latter an unfair advantage over its competitors. In 2020, a lower court ruled against the Commission’s decision; however, the European Court of Justice reinstated the order, stating that Ireland must recover €13 billion from Apple.
During the hearing, Apple argued that it had paid taxes in line with international tax laws, citing the United States as an example. Chief Executive Officer (CEO) Tim Cook dismissed the European Commission’s stance and called it “total political crap.” The company maintained that it has been unfairly targeted by retroactively altering tax rules.
In the long run, the decision against Apple is likely to have broader implications for how multinational companies allocate profits. It may influence future tax arrangements within the EU. Previously, Apple had adjusted its tax structure in 2015 when Ireland closed a loophole known as the “double Irish.” Furthermore, since 2024, a global minimum tax rate of 15% has been implemented on corporate profits by many countries.
Google case: Abuse of market power
In the case related to Google, the ECJ upheld a fine of €2.4 billion against the company for abusing its dominance in the search market. The case dates back to 2017, when the European Commission fined Google for violating antitrust laws. After seven years of legal battle, the Court found that Google granted itself an illegal advantage by promoting its own shopping services over those of its competitors.
Google has expressed disappointment over the ruling against the company, stating that it pertains to a specific set of circumstances. Google claimed that it made changes in 2017 to comply with the demands laid down by the European Commission, which have been in effect over the past seven years, benefiting hundreds of comparison-shopping services.
