EU's highest court rules major tax, competition cases against Google, Apple

9/12/2024 5:02:13 AM

(MENAFN) On Tuesday, the European Court of Justice will make pivotal rulings on two high-profile cases involving major U.S. technology companies, Google and Apple. These cases are part of the European Commission's broader efforts to address perceived tax avoidance and competition violations by American tech giants. In one case, the court will decide whether Apple should pay a substantial tax penalty. In 2016, the European Commission ordered Apple to remit 13 billion euros (approximately USD14.4 billion) in back taxes to Ireland, alleging that the company had benefited from an illegal preferential tax arrangement with the Irish government, which allowed it to avoid paying taxes. Apple contested this decision, arguing that the Commission had not sufficiently demonstrated that the agreement constituted an illegal state subsidy and claimed that its profits were already taxed in the U.S., leading to potential double taxation. Apple won the initial ruling from the General Court of the European Union, but the Commission appealed, leading to the current case before the EU's highest court.

In a separate case, the European Court of Justice will also address a USD2.4 billion fine imposed on Google by the European Commission. This fine was levied for allegedly violating EU competition laws by giving preferential treatment to its own Google Shopping service over rival services. Google challenged the fine, which was upheld by the General Court, and has now appealed to the European Court of Justice for a final decision to overturn the penalty. Both cases are crucial in determining the regulatory landscape for U.S. tech firms operating in Europe and could have significant implications for their future operations and compliance strategies.

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