The European Union’s top court is set to make a ruling on a 13-billion-euro tax case involving Apple and Ireland, a decision that could have significant implications for both parties. The case dates back to 2016 when the EU accused Ireland of allowing Apple to avoid billions of euros in taxes through favorable tax arrangements. Despite a victory for Apple in 2020 when the EU’s General Court annulled the order for Apple to pay the taxes owed, the top legal adviser of the higher European Court of Justice recommended overturning that decision due to legal errors. Now, the ECJ’s judges must decide whether to send the case back to the lower EU court, potentially forcing Apple to pay the 13 billion euros.
In another closely watched case, the EU court is also expected to rule on a multi-billion-euro fine against Google. The fine, totaling 2.4 billion euros, was imposed in 2017 for Google’s abuse of its dominant position by favoring its own Google Shopping service in search results. Despite Google facing record fines in recent years for violating EU competition rules, the company hopes to avoid further penalties. However, a top adviser recommended upholding the 2.4-billion-euro fine, suggesting that the court is likely to follow this advice.
Apart from the ongoing tax case, Google is facing legal challenges on multiple fronts. In the United States, a trial began accusing Google of online advertising domination and stifling competition. A US judge recently ruled that Google maintained a monopoly with its search engine. The company is also under scrutiny for its ad tech practices, with regulators worldwide concerned about fair competition in the online ad market. Brussels has accused Google of abusing its dominance in this sector and recommended the company sell part of its ad services to address these concerns. Additionally, Britain’s competition watchdog found that Google engages in anti-competitive practices in online advertising after a two-year investigation.
The upcoming rulings will be a crucial test for Margrethe Vestager, the EU’s competition chief, who has faced challenges in defending her decisions in EU courts. With previous cases lost against major companies like Amazon and Starbucks, Vestager will be hoping for a definitive victory in both the Apple and Google cases. The outcomes of these rulings could have far-reaching consequences for how the EU enforces tax regulations and competition rules against tech giants operating within its jurisdiction.
The decisions in the Apple and Google tax cases will have significant ramifications for the companies involved as well as the EU’s approach to regulating big tech. With billions of euros at stake and legal precedents to consider, the outcomes of these rulings will shape the future of tax enforcement and competition regulation in the EU.
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