The European Commission has successfully directed Apple to pay billions in back taxes, a decision upheld by the EU’s top court. This ruling, along with a separate decision against Google’s anticompetitive practices, marks a major win for EU antitrust chief Margrethe Vestager, who has been known for targeting Big Tech’s tax arrangements and unfair competition practices.
In the Apple case, the European Commission had ordered the tech giant to pay 13 billion euros in back taxes to Ireland, stating that Apple had benefitted from special tax deals that artificially lowered its tax burden. The Court of Justice of the EU has confirmed this decision, stating that Apple was granted unlawful aid by Ireland.
Apple expressed disappointment with the ruling, stating that it had paid the appropriate taxes as required by international tax laws. The company also announced it was expecting to record a one-time income tax charge of up to about $10 billion in its upcoming financial quarter.
In a separate case, the court upheld a 2.42 billion euro fine against Google for anticompetitive practices related to its price comparison shopping service. Google has voiced its disappointment with the ruling, but stated that it had made changes in 2017 to comply with the European Commission’s decision.
These rulings set a precedent for future antitrust cases involving Big Tech companies in the EU. Both Apple and Google are facing increasing scrutiny over their business practices, with Google having racked up over 8.25 billion euros in antitrust fines in the past decade. The companies are now awaiting the outcomes of other ongoing cases against them.
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