In a significant victory for European Union antitrust chief Margrethe Vestager, the EU’s top court has upheld her crackdown on Apple’s Irish tax deal and Google’s anticompetitive practices. The court rulings, announced on Tuesday, confirm Vestager’s efforts to hold Big Tech accountable for their tax arrangements and business practices in the EU, sending a strong message that the days of exploiting loopholes and stifling competition are over.
Apple’s Irish Tax Deal: A Sweetheart Arrangement Exposed
The court sided with Vestager’s 2016 decision, ordering Apple to pay 13 billion euros ($14.4 billion) in back taxes to Ireland. The judges found that Apple’s two Irish subsidiaries received favorable tax treatment, artificially reducing their tax burden to as low as 0.005 percent in 2014. This sweetheart arrangement allowed Apple to avoid paying its fair share of taxes, depriving the Irish government of much-needed revenue.
Apple expressed disappointment with the ruling, stating it had paid $577 million in tax, 12.5 percent of its profit generated in Ireland, during the period covered by the EU investigation. However, the court’s decision makes it clear that Apple’s tax arrangements were not in line with EU law, and the company must now face the consequences.
Google’s Anticompetitive Practices: A Pattern of Behavior Exposed
The court also threw out Google’s appeal against a 2.42 billion euro ($2.67 billion) fine levied by Vestager in 2017. The judges found Google’s conduct discriminatory, using its price comparison shopping service to gain an unfair advantage over smaller European rivals. This ruling is a significant blow to Google, which has faced numerous antitrust charges in the EU for its business practices.
Google voiced disappointment with the ruling, stating it had made changes in 2017 to comply with the EU decision. However, the court’s decision highlights a pattern of behavior by Google, which has consistently sought to stifle competition and maintain its dominance in the market.
Implications: A New Era for Big Tech in the EU
These landmark cases mark a significant win for Vestager, who has made a name for herself by going after Big Tech’s tax arrangements and anticompetitive practices. The rulings could embolden her successor to take a similar approach, ensuring that tech giants operate fairly and transparently in the EU.
The cases also send a strong message to Big Tech: the days of exploiting loopholes and stifling competition are over. The EU will no longer tolerate business practices that harm consumers and stifle innovation. As the tech giants continue to grow and expand their reach, they must do so in a way that respects EU law and promotes fair competition.
In conclusion, the EU court’s rulings in the Apple and Google cases are a significant victory for antitrust chief Margrethe Vestager and a major blow to Big Tech. The cases highlight the need for greater transparency and accountability in the tech industry and mark a new era for Big Tech in the EU.
