In a significant blow to big tech companies, the European Court of Justice (ECJ) has ruled against both Apple and Google in two separate cases on September 10, 2024. The court’s decisions mark a major victory for the European Union in its ongoing efforts to regulate tech giants and ensure fair competition and taxation in the digital economy.In the case against Apple, the ECJ has overturned a previous ruling and ordered the company to pay €13 billion ($14.3 billion) in back taxes to Ireland. The court found that the tax benefits offered to Apple between 1991 and 2014 constituted illegal state aid. This decision upholds the European Commission’s original 2016 ruling, which Apple had successfully appealed in 2020. The funds, currently valued at €13.77 billion including interest, have been held in an escrow account since 2016.Simultaneously, the ECJ has upheld a €2.4 billion fine against Google for antitrust violations. The court confirmed that Google abused its dominant market position by favoring its own Google Shopping price comparison service over competitors in its search results. This fine, initially imposed by the European Commission in 2017, is one of three penalties levied against Google in the last decade, totaling €8.25 billion.European Competition Commissioner Margrethe Vestager, who has been at the forefront of the EU’s efforts to rein in tech giants, hailed the rulings as a vindication of the Commission’s actions. The decisions are seen as a testament to the EU’s commitment to ensuring fair competition and tax compliance in the digital economy.These rulings come at a time of increased regulatory and judicial scrutiny of the tech industry, reflecting a growing sentiment for greater control over their activities. As the dust settles on these landmark cases, both Apple and Google are expected to carefully consider their next steps, while the European Commission may view this as a green light to pursue further actions against perceived market distortions by large tech companies.
Key points
- The European Court of Justice has ruled against Apple, ordering it to pay €13 billion in back taxes to Ireland.
- The court has also upheld a €2.
- These rulings represent a significant victory for the EU in its efforts to regulate big tech companies and ensure fair competition.
- The decisions may pave the way for further regulatory actions against large tech companies in Europe.
4 billion fine against Google for antitrust violations related to its Google Shopping service.
Contradictions👾While most sources report that Apple lost its appeal and must pay the €13 billion in back taxes, one source (ComputerHoy.
com ) incorrectly states that the ECJ ruled in favor of Apple, which contradicts the majority of reports.
