The European Court of Justice rules against Apple in tax battle

The European Court of Justice has made a final ruling against Apple in a decade-long court battle over its tax affairs in Ireland. This decision comes after the European Commission’s investigation into Apple’s tax payments in Ireland, where the tech giant’s headquarters are located within the EU.

Apple has responded to the ruling by stating that the European Commission is attempting to retroactively change the rules and disregarding the fact that the company’s income was already subject to taxes in the U.S. The company also mentioned that the case is now of historical relevance only, as the Irish government has reassured that it does not provide preferential tax treatment to any companies or taxpayers.

Following the ruling, Apple’s shares were down by 1% in premarket trading, indicating a negative impact on the company’s stock value. In 2016, the European Commission ordered Dublin to recover up to 13 billion euros in back taxes from Apple, citing that the tech company had received “illegal” tax benefits from Ireland over two decades.

Both Apple and Ireland appealed the commission’s decision in 2019, leading to the EU General Court’s ruling in favor of the tech giant in 2020. However, the European Court of Justice has now set aside the General Court’s decision and upheld the commission’s original ruling from 2016, leading to financial implications for Apple.

The ongoing conflict between U.S. tech giants and the EU has been highlighted by this case, showcasing the challenges faced by companies like Apple in navigating regulations related to data protection, taxation, and antitrust. Apple has faced other legal battles in the EU, including an antitrust fine for abusing its dominant position in the market for music streaming apps.

The EU’s Digital Markets Act has forced companies, including Apple, Alphabet, and Meta, to change their practices in Europe. The commission has launched investigations under the DMA to address concerns related to competition and market dominance within the tech industry, indicating stricter regulations for U.S. tech giants operating in the EU.