EU orders Apple to pay €13bn in unpaid taxes

The ECJ’s ruling is definitive, stating that “Ireland provided Apple with unlawful state aid, which must be recovered.” While Ireland confirmed it would abide by the court’s decision, Apple expressed disappointment, accusing the European Commission of attempting to “retroactively change the rules.”

In a separate ruling, the ECJ also concluded a long-standing case against Google, imposing a €2.4 billion fine for abusing its market dominance. EU antitrust chief Margrethe Vestager praised both rulings, calling them a victory for “European citizens and tax justice.”

The ECJ’s decision reaffirms the European Commission’s original 2016 ruling after years of legal battles. The case pertains to the tax treatment of profits generated by two Apple subsidiaries in Ireland between 1991 and 2014. The tax arrangements were deemed illegal because other companies could not access the same benefits.

The initial ruling came as part of the Commission’s broader effort to target multinational corporations that were seen as using complex tax structures to minimise their payments. However, the lower ECJ court overturned this decision in 2020 after Ireland’s appeal, but the higher court has now reversed that outcome, citing legal errors in the lower court’s judgment.

Apple said in a statement: “This case has never been about how much tax we pay, but which government we are required to pay it to. We always pay all the taxes we owe wherever we operate and there has never been a special deal. The European Commission is trying to retroactively change the rules and ignore that, as required by international tax law, our income was already subject to taxes in the US. We are disappointed with today’s decision as previously the General Court reviewed the facts and categorically annulled this case.”