Google, Apple lose major EU appeals, hit with $25.5b fines & taxes
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The news: The European Court of Justice upheld two landmark rulings against Apple and Google, in major wins for the EU's long-standing crackdown on Big Tech.
The numbers: Apple was ordered to repay €13 billion ($21.54 billion) in back taxes to Ireland after it was found to have benefited from unlawful state aid. Google was fined €2.4 billion for abusing its dominant position in search results to favour its own shopping service over competitors.
In Apple's case, the court upheld a 2016 EU ruling that required Ireland to reclaim back taxes from the company after allowing it to underpay duties for nearly 20 years. European officials argued the arrangement reduced Apple's tax rate on European profits to less than 1%.
In the case against Google, the court upheld the 2017 EU decision to fine the company for favouring its own shopping service in search results, following a failed appeal in 2021.
The context: Both rulings are final and cannot be appealed.
The rulings further solidify the EU, and Margrethe Vestager, the EU’s competition chief, as the world’s most effective tech industry watchdog. Although the lengthy appeals process has been criticised for not keeping pace with the rapidly evolving tech sector.
What they said: Vestager hailed the decisions as victories for European citizens and tax justice, while spokespeople from both companies expressed their disappointment.
Apple contested the interpretation of tax laws and Google pointed to changes it had made in 2017 to address the EU's concerns.
