by The European Union’s (EU) highest court is poised to issue rulings on Tuesday in two significant cases involving tech giants Apple and Google. The decisions, which could potentially result in multibillion-euro fines for the companies, will be closely watched as they may set important precedents for the EU’s regulatory stance on corporate tax practices and competition law.
The long-standing Apple case dates back to 2016 when the EU Commission accused Ireland of allowing the iPhone manufacturer to avoid paying billions of euros in taxes through sweetheart deals. The EU General Court annulled the order for Apple to pay the taxes owed in 2020, a decision that Brussels appealed. However, the European Court of Justice (ECJ) adviser recommended reversing this decision due to legal errors. The Luxembourg-based ECJ judges must now decide whether to send the case back to the lower court, potentially leading to Apple’s payment of the 13 billion euros.
The EU is eager for a favorable outcome in the Apple case, as it has faced setbacks in recent years in defending its tax enforcement actions against companies like Amazon and Starbucks. In the Google case, the EU hopes for a definitive victory, as the ECJ’s judges are expected to uphold the 2.4 billion euro ($2.6 billion) antitrust fine imposed in 2017. Although the adviser’s opinion is not binding, it carries significant weight and often influences the court’s rulings.
Google faces additional legal challenges, as the EU court will decide on the smallest of the company’s fines, worth around 1.49 billion euros, next week. Meanwhile, in the United States, Google is undergoing a trial for allegedly dominating online advertising and stifling competition. A US judge recently ruled that Google maintains a monopoly with its search engine, and the company’s ad tech system is a major concern for regulators worldwide. The EU preliminarily found that Google abused its dominance in the online ad market last year and recommended the company sell part of its ad services to ensure fair competition. The investigation remains open.
Britain’s competition watchdog also concluded that Google employed anti-competitive practices in online advertising after a two-year investigation.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
