EU Court Orders Apple to Pay €13 Billion in Back Taxes

Apple Loses Decade-Long Tax Battle in EU

On Tuesday, the European Court of Justice ruled against Apple in its prolonged legal battle over tax payments in Ireland. This decision comes just hours after Apple introduced new products, including updates to its iPhone, Apple Watch, and AirPods.

Apple has expressed its disagreement with the ruling, stating that the European Commission is attempting to retroactively alter tax rules, despite the company's compliance with international tax laws, which already subjected its income to U.S. taxes.

Following the ruling, Apple shares dropped by 1% in premarket trading in London.

The Irish government, in response, emphasized that the case is now of historical relevance and reiterated its stance that it does not provide preferential tax treatment to any companies. The government will now proceed with transferring the assets in the escrow fund to Ireland.

Background of the Case

The European Commission began investigating Apple's tax arrangements in Ireland in 2014. By 2016, the Commission ordered Ireland to recover up to €13 billion ($14.4 billion) in back taxes from Apple, citing "illegal" tax benefits granted over two decades.

Apple and Ireland appealed this decision, and in 2020, the EU General Court ruled in favor of Apple, annulling the Commission's decision. However, the Commission appealed this ruling, leading to the recent decision by the European Court of Justice, which upheld the original 2016 ruling.

This case underscores the ongoing tensions between U.S. tech giants and the EU, which has been actively addressing issues related to data protection, taxation, and antitrust.

Ongoing EU Scrutiny

Apple continues to face scrutiny from the EU. Recently, the European Commission fined Apple €1.8 billion for antitrust violations related to its dominance in the music streaming market. Additionally, the

EU's Digital Markets Act has prompted changes in business practices for major tech companies, including Apple, Alphabet, and Meta.