In a recent ruling by the top EU court, a 13-billion-euro tax case involving Apple and Ireland was decided. This legal battle dates back to 2016 when the European Commission accused Ireland of allowing Apple to avoid billions of euros in taxes through sweetheart tax arrangements. The case took a turn in 2020 when the EU’s General Court annulled the order for Apple to pay the taxes owed. However, a recommendation by the top legal adviser of the higher European Court of Justice last year advised scrapping that decision, citing legal errors. Now, the ECJ judges must determine whether to send the case back to the lower EU court, potentially resulting in Apple having to pay the 13 billion euros.
Google Case: A Victory for Brussels?
Another eagerly awaited decision by the top EU court involves a multi-billion-euro fine against Google. The European Commission fined Google 2.4 billion euros in 2017 for abusing its dominant position by favoring its own Google Shopping service in search engine results. While Google faces additional fines and legal challenges, the EU court is expected to uphold the 2.4 billion euro fine in this particular case. The ruling could be a significant victory for Brussels, especially after facing difficulties defending its tax enforcement moves in recent years with losses against other big tech companies like Amazon and Starbucks.
Legal Challenges for Google
Apart from the EU court decisions, Google is also facing legal challenges in the United States. A recent trial accuses Google of dominating online advertising and stifling competition, following a ruling that the company maintained a monopoly with its search engine. Regulators worldwide are particularly concerned about Google’s ad tech system, which decides online advert placements and costs. In a preliminary finding, the EU accused Google of abusing its dominance in the online ad market and recommended selling part of its ad services for fair competition. The legal scrutiny extends to countries like Britain, where competition watchdogs concluded that Google engages in anti-competitive practices in online advertising.
The recent EU court decisions highlight the ongoing legal battles between tech giants like Apple and Google and European regulators. These cases not only impact the financial bottom line of these companies but also have wider implications on competition and tax enforcement in the digital age. The outcomes of these rulings will set precedents for future cases and regulatory actions, shaping the relationship between big tech companies and governments around the world. With the ever-evolving landscape of technology and commerce, these legal battles are likely to continue, challenging the balance of power in the digital economy.
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