Apple has been ordered to repay €13 billion ($14 billion; £11 billion) in unpaid taxes to Ireland by the European Court of Justice (ECJ), after years of legal disputes between the tech giant, the Irish government, and the European Union. This development comes a day after Apple launched it’s new iPhone 16.
COURT UPHOLDS EU COMMISSION’S 2016 RULING
The EU Commission initially accused Ireland of granting Apple illegal tax advantages, an accusation that dates back eight years. The ECJ confirmed the European Commission’s 2016 ruling, which found that Ireland had provided unlawful state aid to Apple, a decision now upheld by Europe’s highest court.
“The Court of Justice gives final judgment in the matter and confirms the European Commission’s 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover,” the court stated.
This ruling follows years of appeals and reversals, with the Irish government having consistently argued against the need to collect the taxes, claiming it adhered to legal tax agreements.
APPLE RESPONDS: “THIS CASE IS ABOUT WHICH GOVERNMENT WE PAY”
Apple has expressed its disappointment with the ruling, emphasizing that it has always paid its taxes in full.
“This case has never been about how much tax we pay, but which government we are required to pay it to. We always pay all the taxes we owe wherever we operate, and there has never been a special deal,” a company representative stated.
Apple also noted that the company has been a significant contributor to the European economy and remains one of the largest taxpayers globally. The legal battle pertains to taxes on profits generated by two Apple subsidiaries in Ireland from 1991 to 2014, during which the EU found Apple’s tax arrangements gave them an unfair advantage over other companies.
LEGAL BACKGROUND AND IMPLICATIONS
The case, which originally arose from the European Commission’s broader efforts to crack down on corporate tax avoidance, highlights how multinational giants like Apple were perceived to use complex tax structures to lower their tax liabilities. The ECJ’s latest ruling overturns a 2020 decision from a lower court, which had annulled the Commission’s ruling.
The higher court found legal errors in the 2020 decision, clearing the way for Ireland to recover the unpaid taxes from Apple. The Irish government has long resisted efforts to collect the money, arguing that Apple’s tax arrangements complied with national and EU laws.
GOOGLE ALSO FINED BY EUROPEAN COURT
The ruling against Apple comes shortly after Google was also ordered by Europe’s top court to pay a €2.4 billion fine. The fine, related to Google’s abuse of market dominance through its shopping comparison service, marks another significant ruling in the EU’s effort to regulate big tech companies. Google had appealed the penalty, originally imposed by the European Commission in 2017, but the ECJ has now upheld the fine.
Like Apple, Google’s case has been part of a broader EU effort to address what it considers anti-competitive practices by major tech corporations.
