The European Commission has directed Apple to pay billions in back taxes as part of a crackdown on Big Tech’s tax arrangements. This order, which was upheld by the EU’s top court, is a major win for the EU antitrust chief Margrethe Vestager. Vestager has also scored a victory against Google for anticompetitive practices.
The court ruled that Apple must pay 13 billion euros in back taxes to Ireland, where it had benefitted from favorable tax rulings that reduced its tax burden to as low as 0.005 percent. The judges confirmed that Ireland had granted Apple unlawful aid, which it is required to recover. Apple, however, maintains that it has paid taxes in line with Irish laws and is disappointed with the ruling.
In a separate case, Google lost its appeal against a 2.42 billion euro fine imposed by Vestager for anticompetitive practices. The court found that Google’s conduct was discriminatory and did not fall within the scope of fair competition. Google has voiced disappointment with the ruling and stated that it made changes in 2017 to comply with the Commission’s decision.
With these rulings, Vestager has made significant strides in holding Big Tech accountable for tax practices and anticompetitive behavior. The EU is cracking down on companies like Google, imposing hefty fines and forcing them to make changes to comply with competition laws. These decisions set a precedent for future cases and could impact how multinational tech firms conduct their operations in Europe.
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