The EU court is set to make a landmark ruling on Tuesday in a 13-billion-euro tax dispute involving Apple and Ireland. This case, which dates back to 2016, revolves around allegations that Ireland provided Apple with a special tax arrangement that allowed the tech giant to avoid paying billions in taxes. The EU’s executive arm has been adamant that such tax arrangements are in violation of competition laws.
Margrethe Vestager, the EU’s competition chief, has been under intense scrutiny due to a series of setbacks in EU courts regarding her decisions on tax enforcement. The rulings on the Apple and Google cases will be a significant test for Vestager and her team. The final decisions are eagerly awaited and are expected to be announced after 0730 GMT.
In addition to the Apple case, the court will also decide on upholding a multi-billion-euro fine against Google. The fine, which amounts to 2.4 billion euros, was imposed by the EU in 2017 after finding that Google abused its dominant position by favoring its own Google Shopping service in search engine results. The decision to uphold the fine is crucial for Brussels, as it has faced challenges defending its tax enforcement actions in recent years.
Google’s legal challenges extend beyond the EU, with ongoing trials in the United States over allegations of dominating online advertising and stifling competition. A US judge recently ruled that Google maintained a monopoly with its search engine, adding to the tech giant’s legal woes. The company faces mounting pressure from regulators worldwide, particularly in the ad tech sector, where allegations of anti-competitive practices have been raised.
The EU’s preliminary findings last year accused Google of abusing its dominance in the online ad market and recommended divestiture of some of its ad services to ensure fair competition. The probe remains open, indicating continued regulatory scrutiny on Google’s practices. Similarly, Britain’s competition watchdog concluded that Google engages in anti-competitive practices in online advertising after a thorough two-year investigation. This adds to Google’s legal challenges and underscores the growing concerns over its market dominance.
The EU court’s decisions in the Apple and Google tax cases will have far-reaching implications for the tech giants and the regulatory landscape in the EU. The outcomes of these cases will not only shape the future of tax enforcement and competition rules in the EU but also set a precedent for how tech companies operate within the bloc. The legal battles facing Apple and Google highlight the complexities and challenges of regulating big tech companies in the era of digital dominance.
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