Tech giant Apple has suffered a crushing defeat in its 10-year tax dispute with the European Union. The European Court of Justice (ECJ) has upheld a 2016 decision by the European Commission that declared Apple’s tax benefits in Ireland “illegal.” The decision means Apple must pay back 13 billion euros (about $14.4 billion) to Ireland.
Apple Lost Nearly 10-Year War
The ECJ’s decision was overshadowed by Apple’s new product launches, which had aimed to boost sales by introducing new features to its iPhone, Apple Watch and AirPod lines. However, the tax case defeat sent the company’s shares down 1%.
The case began in 2014 when the European Commission decided to investigate Apple’s tax payments in Ireland. The Commission claimed that Apple had received illegal tax benefits from the Irish government for two decades, prompting Dublin to demand €13 billion in refunds from the company.
Apple and Ireland appealed the Commission’s decision in 2019, and the European Union General Court ruled in favor of Apple in 2020. However, the Commission appealed the decision and took the case to the European Court of Justice.
The European Court of Justice’s decision highlights the ongoing clash between U.S. tech giants and the European Union, which has been taking a tougher stance against U.S. tech companies on issues ranging from data protection to taxation and antitrust regulations.
This case is not Apple’s first clash with the EU. In March, the Commission slapped Apple with a €1.8 billion antitrust fine for abusing its dominant position in the distribution of music streaming apps. The EU’s sweeping Digital Markets Act (DMA) is also forcing tech giants like Apple to change some of their practices in Europe.
{{user}} {{datetime}}
{{text}}