The European Court of Justice (ECJ) ruled against Apple in a long-standing tax dispute dating back to 2016 when the European Commission ordered Ireland to recover up to 13 billion euros ($14.4 billion) in back taxes from Apple for alleged illegal tax benefits, CNBC reports.
The case concerns whether Apple received illegal tax benefits from Ireland over two decades. The ruling reaffirms the 2016 decision that Apple benefited from preferential tax treatment. The ECJ’s decision overturns a 2020 ruling by the EU General Court that had favored Apple. Apple has stated it will incur a one-time income tax charge of about $10 billion in its upcoming fiscal quarter. The tech giant maintains that it has always paid all taxes owed and argues that the European Commission is trying to retroactively change tax rules.
The dispute reflects ongoing tensions between US tech companies and the EU over issues like taxation, data protection, and antitrust. The EU recently fined Apple 1.8 billion euros for antitrust violations and compliance with the Digital Markets Act.
