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A costly day for two technology giants, Apple and Google are "punished".

2024-09-11 09:14:22Lifestyle SHKRUAR NGA REDAKSIA VOX

A costly day for two technology giants, Apple and Google are

Apple has been ordered by the European Court of Justice (ECJ) to pay 13 billion euros in unpaid taxes to Ireland.

The European Commission has accused Ireland of giving Apple illegal tax advantages eight years ago, but the Irish government has repeatedly argued against the need for the tax to be paid.

The European Court of Justice stated that its decision on this matter is final and that "Ireland gave Apple illegal aid, which Ireland must take back".

The Irish government said it would respect the decision, while Apple said it was disappointed and accused the European Commission of trying to "retroactively change the rules".

A separate ruling by the European Court of Justice on Tuesday also ended a long-running case with Google, where the tech giant will be forced to pay a fine of 2.4 billion euros for abuse of a dominant market position.

Margrethe Vestager, the EU's antitrust chief, welcomed both decisions. "Today is a great victory for European citizens and tax justice," she said.

Before and after

The decision against Apple means that the European Court of Justice has finally upheld the decision given by the European Commission in 2016 after a long legal process.

The ruling covered the period from 1991 to 2014 and related to how profits generated by Apple's two Irish-based subsidiaries were treated for tax purposes.

Such tax deals were declared illegal because other companies could not get the same advantages.

Apple stated: This case has never been about how much tax we pay, but to which government we should pay it.

We always pay all taxes wherever we operate and there has never been a special arrangement. The European Commission is trying to retroactively change the rules, ignoring that, as required by international tax law, our income was already subject to US tax.

We are disappointed with today's decision, as the Court previously reviewed the facts and categorically overruled this case, Apple added. The bad news for Apple comes a day after the tech giant unveiled its new iPhone range.

A costly day for the tech giants

The European Court of Justice ruled that Google must pay a fine of 2.4 billion euros for abusing its dominant market position with its comparison shopping service.

The tech giant had appealed against the fine, which was originally imposed in 2017 by the European Commission. Google said it was disappointed with the decision and noted that it had made changes in 2017 to comply with the Commission's decision. This was the largest penalty ever imposed by the European Commission at the time.

A year later, Google was fined by the EC with a larger fine of €4.3 billion for claims that it used Android software to unfairly promote its own apps. /BBC


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