Apple has been ordered by the European Court of Justice (ECJ) to repay €13 billion (£11 billion; $14 billion) in unpaid taxes to Ireland. The European Commission accused Ireland of offering illegal tax advantages to Apple eight years ago, but the Irish government has continually contested the necessity of the repayment.
The ECJ stated, “The Court of Justice gives final judgment in the matter and confirms the European Commission’s 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover.”
This ruling follows the recent launch of Apple’s new iPhone 16 series. An Apple spokesperson clarified, “This case has never been about how much tax we pay, but which government we are required to pay it to. We always pay all the taxes we owe wherever we operate and there has never been a special deal.”
The court’s decision marks a significant legal conclusion, affirming the European Commission’s stance from eight years ago. The ruling pertains to tax arrangements relating to profits generated by two Apple subsidiaries in Ireland from 1991 to 2014, which were found to be illegal as they provided advantages not available to other companies.
Apple expressed disappointment with the ruling, referencing a prior annulment by the General Court, and argued that their income was taxed in the U.S. as required by international tax law. The original ruling was part of the European Commission’s broader initiative to tackle multinational companies exploiting financial structures to lessen their tax obligations.
The earlier decision had been overturned by a lower ECJ court in 2020, but the higher court has corrected that, stating it contained legal errors. Ireland now faces the complicated task of recovering the overdue taxes from Apple, a process the government has sought to prevent through years of legal appeals.
In a related development, the ECJ has also mandated Google to pay a €2.4 billion (£2 billion) fine for leveraging its market dominance in shopping comparison services, concluding another prolonged legal battle for the tech industry.
