Apple must pay 13 billion euros in back taxes, EU’s top court rules
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Europe’s top court on Tuesday ruled against Apple in the tech giant’s 10-year court battle over its tax affairs in Ireland.
The pronouncement from the European Court of Justice comes hours after Apple unveiled a swathe of new product offerings, looking to revitalize its iPhone, Apple Watch and AirPod lineups.
CNBC has reached out to Apple for comment.
“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 U.S.,” the company said in a statement, according to Reuters.
Apple shares were down 1% in premarket trading at 09:52 a.m. London time.
In a statement, the Irish government said that the Apple case “involved an issue that is now of historical relevance only,” adding that its position has always been that it “does not give preferential tax treatment to any companies or taxpayers.”
The government noted it will now begin the process of transferring the assets in the escrow fund to Ireland.
The case to date
The commission in turn appealed the General Court’s decision, sending the litigation up to the ECJ.
The ECJ on Tuesday set aside the General Court’s decision and confirmed the commission’s original 2016 ruling.
The case, which first began under outgoing competition chief Margrethe Vestager, highlights the continued conflict between U.S. tech giants and the EU, which has sought to tackle issues from data protection to taxation and antitrust.
This was not the last time that Apple found itself in the EU’s crosshairs. Most recently, the commission hit Apple with an antitrust fine of 1.8 billion euros in March for abusing its dominant position in the market for the distribution of music streaming apps.
Separately, the EU’s sweeping Digital Markets Act has forced companies to change some of their practices in Europe. The commission has opened various investigations under the DMA into tech giants, including Apple, Alphabet and Meta.
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