The European Court of Justice (ECJ) has ordered tech giant Apple to pay a staggering €13bn (£11bn; $14bn) in unpaid taxes to Ireland. This decision comes after the European Commission accused Ireland of granting Apple illegal tax advantages eight years ago.
Despite the Irish government’s consistent arguments against the need for the tax to be paid, the ECJ ruled that Ireland must recover the unlawful aid granted to Apple. In response, Apple expressed disappointment with the decision, accusing the European Commission of attempting to retroactively change the rules.
This ruling marks the end of a long legal battle that began in 2016 when the European Commission first issued the decision. The case covered the period from 1991 to 2014 and focused on the tax treatment of profits generated by two Apple subsidiaries based in Ireland.
In a separate ruling, Google was also ordered to pay a €2.4bn fine for market dominance abuse. The EU antitrust chief, Margrethe Vestager, hailed both judgements as a victory for European citizens and tax justice.
The Irish government, which has spent years trying to avoid recovering the lost taxes from Apple, will now begin the process of transferring assets. Despite Ireland’s low corporate tax rates, the EU argued that by applying very low tax rates to Apple, Ireland was granting an unfair subsidy.
Overall, it has been an expensive day for tech giants, with both Apple and Google facing significant financial penalties from the ECJ. Apple’s disappointment with the ruling comes just a day after the company released its new iPhone 16 range, adding to the complexity of the situation.
