Apple has been ordered by the European Court of Justice (ECJ) to pay €13bn (£11bn; $14bn) in unpaid taxes to Ireland. The European Commission accused Ireland of granting Apple illegal tax benefits eight years ago, a claim Ireland has consistently contested. The ECJ ruled that Ireland had provided unlawful state aid to Apple, which must now be recovered.
Ireland stated it would comply with the decision, while Apple expressed disappointment, accusing the European Commission of attempting to retroactively change tax rules. A separate ruling on the same day required Google to pay a €2.4bn (£2bn) fine for abusing its market dominance.
Margrethe Vestager, the EU’s antitrust chief, hailed the rulings as victories for European citizens and tax justice. The Apple ruling confirms the European Commission’s 2016 decision, following a protracted legal battle. The case involved tax arrangements Apple used from 1991 to 2014 through its Irish subsidiaries, which were deemed illegal as other companies couldn’t access similar benefits.
Apple argued that the case was not about tax amounts but about which government should collect the taxes, maintaining that its income was already taxed in the U.S. and that no special deal had been made. The decision follows a previous ruling in 2020 by a lower ECJ court in Apple’s favor, which has now been overturned due to legal errors.
Ireland, known for its low corporate tax rate, has been Apple’s European base for years, and Dublin fought to prevent the repayment of the back taxes, arguing it helped make Ireland attractive to major companies. The EU argued that Ireland’s favorable tax rates for Apple constituted an unfair subsidy.
The ruling represents a major win for the European Commission’s efforts to stop large corporations from exploiting tax loopholes. Although the Irish government remarked that the case is now of historical significance, it stated that the process to transfer the owed taxes to Ireland would soon begin.
Additionally, the ECJ’s ruling on Google requires the company to pay a fine for abusing its market dominance through its shopping comparison service, following an earlier decision by the European Commission in 2017. Google had appealed but was unsuccessful.
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