Brussels:The European Union's top court is set to deliver two major rulings on Tuesday. One involves a 13-billion-euro tax case against Apple, while the other could see Google face a hefty fine. These decisions are eagerly awaited as they could mark significant wins for the EU in its battle against big tech.
Apple vs. EU: A Long-Running Tax Dispute
The legal fight between Apple and the European Commission began in 2016. The Commission accused Ireland of allowing Apple to avoid billions in taxes, amounting to 13 billion euros. This was part of a broader EU investigation into deals between major companies and European countries.
In 2020, the iPhone maker scored a victory when the EU's General Court threw out the order for the company to pay back the taxes. However, the European Court of Justice (ECJ) may now overturn that decision. Last year, a legal adviser for the court found errors in the previous ruling, suggesting Apple could face a fresh judgment.
If the ECJ rules against Apple, the case could return to the lower court, possibly leading to Apple paying the full 13 billion euros.
Google Faces a 2.4-Billion-Euro Fine
In addition to the Apple case, the EU court will decide on a 2.4-billion-euro fine imposed on Google. The fine, handed out in 2017, accused Google of using its power to promote its Google Shopping service unfairly. Although a legal adviser backed the fine earlier this year, it’s now up to the court to make a final decision.
This isn’t the only fine Google faces. Between 2017 and 2019, the EU hit the tech giant with fines totaling nearly 8 billion euros for various competition violations. Another court decision next week could result in Google paying an additional 1.49 billion euros.
Challenges Mount for Google in Europe and the US
Google is also facing legal trouble in the United States. A trial began on Monday in which the U.S. government accuses Google of monopolizing online advertising and crushing competition. The company's ad technology, which controls what ads users see and how much they cost, is under scrutiny.
In Europe, regulators are investigating Google’s dominance in the online ad market. Last year, the EU suggested that Google should sell part of its ad services to level the playing field. A similar investigation in the UK recently concluded that Google uses "anti-competitive practices" in its ad business.
What’s at Stake for Big Tech?
These cases are crucial for the EU’s competition chief, Margrethe Vestager, who has faced setbacks in recent years. Winning these battles would strengthen the EU’s efforts to regulate big tech and make sure companies pay their fair share of taxes and compete fairly.
With the decisions expected soon, all eyes are on Brussels as the EU court prepares to issue its rulings.
Published: 10 Sept 2024, 10:33 am IST
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