In the case of Google, the €2.4 billion fine was upheld for favoring the Google Shopping search engine. Apple lost a parallel case in which the EU had pursued the company for tax avoidance through a tax deal with the Irish government.
Google had appealed, but the court ruled that the company had not acted according to fair market principles. Although Google had already made changes to comply with EU rules, the fine remained in place.
According to the EU, Apple received illegal state aid from Ireland in the form of favorable tax arrangements, allowing it to pay only a fraction of its corporate tax. The court now ruled that Apple must pay €13 billion in back taxes to Ireland.
These rulings could have major consequences for other tech giants. The EU has previously imposed fines on companies such as Amazon and Meta (formerly Facebook), and the ECJ's judgment strengthens the expectation that the EU will continue to act firmly against tax avoidance and unfair competition.
The rulings demonstrate that Brussels is determined to rein in Big Tech's power and address potential tax structures deemed unfair.
Large technology companies will likely need to reconsider their tax strategies and competition policies to avoid further legal actions. This may lead to higher tax payments in Europe and stricter regulations regarding the use of market positions.
The ECJ's decisions are final and cannot be appealed.