EU Court Supports Vestager in Fight Against Big Tech
EU Court supports Vestager, EU antitrust chief Margrethe Vestager secured two significant victories as Europe’s top court supported her cases against Apple and Google. These rulings mark key moments in her efforts to tackle unfair tax deals and anti-competitive practices by major tech firms. Vestager, known for her strict stance on Big Tech, has built her reputation around challenging tax agreements that favour large companies. As she nears the end of her term in November, her latest wins could encourage her successor to continue on the same path.
Apple’s Tax Case
In 2016, the European Commission ordered Apple to repay €13 billion in back taxes to Ireland. The commission argued that Apple benefited from preferential tax rulings in Ireland, reducing its tax rate to as low as 0.005% in 2014. On Tuesday, the Court of Justice of the European Union confirmed the Commission’s decision, ruling that Ireland had granted Apple illegal tax benefits. Apple, which said it had paid 12.5% tax on profits, expressed disappointment, accusing the EU of retroactively changing tax rules.
Ireland also contested the ruling, claiming that its tax policy was consistent with international practices. Despite its previous opposition to corporate tax changes, Ireland has since supported reforms to global tax rules, with its tax revenues increasing as a result.
Google’s Anti-Competitive Practices
The court also dismissed Google’s appeal against a €2.42 billion fine imposed by the Commission in 2017. The fine was related to Google’s price comparison shopping service, which had been deemed anti-competitive. Judges found that Google’s actions had discriminated against smaller European competitors, ruling that the company’s conduct did not align with fair competition standards. Google, which has since adjusted its practices, voiced disappointment with the ruling but noted that the changes had been implemented following the 2017 decision.
Implications for Future Cases
Both rulings are final and cannot be appealed, solidifying the European Commission’s stance against anti-competitive practices and tax avoidance. The outcomes are likely to embolden the EU’s continued scrutiny of Big Tech. Other cases involving multinational corporations, such as IKEA and Nike, are still under investigation, and the Commission remains focused on addressing unfair tax arrangements across Europe.
