The European Union (EU) court is set to make a landmark ruling on Tuesday in a 13-billion-euro tax case involving tech giant Apple and Ireland. Additionally, the court could also uphold a multi-billion-euro fine against Google, marking a significant moment for competition regulations in the EU. These decisions will test the leadership of Margrethe Vestager, the EU’s outgoing competition chief, who has faced challenges in defending her decisions in EU courts.
The Apple case dates back to 2016 when the European Commission accused Ireland of allowing the iPhone maker to avoid paying billions of euros in taxes through special arrangements. Despite a previous ruling in favor of Apple in 2020, the top legal adviser of the European Court of Justice recommended overturning the decision, citing legal errors. Now, the ECJ judges are tasked with deciding whether Apple should indeed pay the 13 billion euros in taxes back to Ireland.
On the other hand, the EU is also hoping for a victory in the case against Google, where a 2.4-billion-euro fine is at stake. The fine was imposed in 2017 after Google was found to have abused its dominant position by favoring its own Google Shopping service in search engine results. With a top adviser already recommending upholding the fine, the decision could have significant implications for Google’s business practices in the EU.
Google is facing mounting legal challenges not only in the EU but also in the United States, where the government accuses the tech giant of monopolistic practices in online advertising. This comes after a US judge ruled that Google maintained a monopoly with its search engine, adding to the scrutiny on Google’s ad tech system. Regulators worldwide, including the EU and the UK, are closely monitoring Google’s dominance in the online advertising market.
As the EU court prepares to announce its rulings, the outcomes of the Apple and Google cases will have far-reaching implications for how major tech companies conduct business in the EU. The decisions will not only shape competition regulations but also set precedents for addressing tax avoidance and anti-competitive practices in the digital market. It remains to be seen whether the court will rule in favor of the EU’s enforcement actions or if the tech giants will prevail in these legal battles.