Luxembourg/IBNS: Apple Inc. has lost its legal battle over a 13 billion ($14.4 billion) Irish tax bill, while Google has lost its challenge against a 2.4 billion fine for abusing its market power, reports Bloomberg.
These rulings mark a significant victory for the European Union (EU) in its efforts to regulate Big Tech, according to reports.
The EUs Court of Justice in Luxembourg backed a landmark 2016 decision that Ireland had violated state aid laws by granting Apple an unfair tax advantage.
Additionally, in another victory for the EUs antitrust chief Margrethe Vestager,
the same court ruled that Google had illegally used its search engine dominance to unfairly promote its own product listings.
Margrethe Vestager, who is just weeks away from departing the Brussels-based European Commission after two terms, made Apple and Alphabet Inc.s Google top targets after taking up her role in 2014, reports Bloomberg.
The Apple decision represents the most significant achievement in Vestagers decade-long effort for tax fairness, which has also included scrutiny of companies like Amazon.com Inc. and Fiat, a unit of Stellantis NV.
Vestager has consistently argued that providing selective tax benefits to large corporations constitutes illegal state aid, which is prohibited under EU law.
Apple CEO Tim Cook previously dismissed the 2016 tax order as total political crap, while Google was fined in 2017 for using its search engine dominance to unfairly boost its own product listings.
Vestager had directed Ireland to recover the 13 billion, which has been held in escrow pending final rulings.
Apple expressed disappointment with the decision, noting that a previous court had annulled the case.
As of early Tuesday, Apple shares fell 1.3 percent to $218 in premarket trading.
Similarly, Googles spokesperson expressed disappointment with the courts judgment and highlighted that a 2017 proposal to address the EUs concerns led to increased visibility for other shopping services.
The EUs actions against Google have prompted global scrutiny, extending beyond search dominance to a series of fines totaling over 8 billion.
The EUs competition regulators hope that the recently implemented Digital Markets Act will address these issues comprehensively.
This regulation includes provisions that prevent Big Tech from prioritizing their own services over those of competitors, a measure influenced by the EUs prolonged conflict with Googles search dominance.
