In a highly anticipated decision, the top EU court is set to rule on a 13-billion-euro tax case involving tech giant Apple and Ireland. This case, dating back to 2016, centers around the European Commission’s claims that Ireland allowed Apple to avoid paying billions in taxes through favorable tax arrangements. The legal battle between the EU’s executive arm and Apple has been ongoing for years, with the EU’s General Court annulling the order for Apple to pay taxes in 2020. However, a setback came for Apple in November last year when the top legal adviser of the European Court of Justice recommended overturning the decision, citing legal errors. Now, the ECJ’s judges must decide on the fate of this case, which could ultimately result in Apple being forced to pay the 13 billion euros.
Google vs. EU: Upholding a Multi-Billion Euro Fine
Another key decision to be announced by the top EU court is the fate of a multi-billion-euro fine against Google. The European Commission imposed a 2.4-billion-euro fine on Google in 2017 after finding that the tech giant abused its dominant position by favoring its Google Shopping service in search engine results. With a top adviser recommending upholding the fine in January, the EU is hoping for a definitive victory in this case. While advisory opinions are not binding, they often influence the final ruling. This is not the first time Google has faced fines for violating EU competition rules, with record fines totaling around eight billion euros between 2017 and 2019. Another fine worth 1.49 billion euros is also under scrutiny by the top EU court next week.
Google’s Legal Challenges Beyond the EU
The legal troubles for Google extend beyond the EU, with a trial beginning in the United States where the government accuses Google of dominating online advertising and stifling competition. A recent ruling by a US judge declared Google’s search engine a monopoly, adding to the company’s legal woes. Google’s ad tech, which controls online advertising, has been a particular area of concern for regulators worldwide. In response to allegations of abusing its dominance in the online ad market, Google has faced calls to sell part of its ad services to ensure fair competition. This issue is not limited to the EU, as Britain’s competition watchdog also found evidence of anti-competitive practices in Google’s online advertising after a two-year investigation.
The upcoming rulings from the top EU court have far-reaching implications for big tech companies like Apple and Google. The decisions will not only impact the financial liabilities of these companies but also set precedents for future cases involving antitrust and tax enforcement. As tech giants come under increasing scrutiny from regulators around the world, these rulings will shape the legal landscape for the industry and determine the extent of regulatory oversight in the digital economy.
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