The European Court of Justice (ECJ) has ruled on appeal that both Google and Apple must pay billions of euros in fines and taxes. The appeal rulings mark a significant moment in the EU's long-running battle against tax avoidance and abuse of power by major US tech companies.
In the case of Google, the fine of €2.4 billion for favouring the Google Shopping search engine was upheld. Apple lost a parallel case in which the EU had prosecuted the company for tax avoidance through a tax deal with the Irish government.
Google 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 the EU rules, the fine stood.
According to the EU, Apple received illegal state aid from Ireland in the form of favorable tax deals, which meant it only had to pay a fraction of its corporate income tax. The court has now ruled that Apple must pay €13 billion in back taxes to Ireland.
These rulings could have major implications for other tech giants. The EU has previously fined companies like Amazon and Meta (formerly Facebook), and the ECJ ruling reinforces expectations that the EU will continue to crack down on tax avoidance and unfair competition.
The rulings show Brussels' determination to curb the power of Big Tech and tackle potential tax structures seen as unfair.
Big tech companies will likely have to rethink their tax strategies and competition policies to avoid further legal action. This could lead to higher tax payments in Europe and stricter regulations on the use of market positions.
The decisions of the ECJ are final and cannot be appealed.