In a landmark ruling, the court ordered Apple to pay Ireland €13bn in unpaid taxes after an eight-year legal dispute. The European Court of Justice (ECJ) upheld the European Commission’s 2016 decision. It accused Ireland of granting Apple illegal tax advantages. Ireland had argued against the tax payment but said it would now respect the ruling.
Apple expressed disappointment, claiming the European Commission is “trying to retroactively change the rules.” The dispute focuses on how Ireland taxed profits from two Apple subsidiaries between 1991 and 2014. The court ruled that these arrangements gave Apple an unfair advantage.
This decision is a major victory for the European Commission, which has been working to prevent large corporations from using creative tax arrangements to reduce their bills. Ireland, a low-tax destination for many multinational companies, opposed the ruling, arguing it was necessary to attract investment.
EU antitrust chief Margrethe Vestager hailed the ruling as a “huge win for European citizens and tax justice.”
On the same day, the ECJ also ruled against Google, ordering the company to pay a €2.4bn fine for abusing its dominance in the online shopping comparison market. Both Apple and Google said they were disappointed with the decisions.
The ruling closes a lengthy chapter in European efforts to enforce tax fairness among global tech giants.
