Double Hitter

Listen to Today's Edition:

Europe’s top court on Tuesday dealt a major blow to two US tech giants in two separate rulings, which analysts said underscored the European Union’s accelerating efforts to rein in Big Tech’s influence over markets and tax systems, CNBC reported.

On Tuesday, the European Court of Justice (ECJ) ruled against Apple, concluding a legal battle that started in 2016 when the European Commission ordered Ireland to recover up to more than $14 billion in back taxes from the US firm.

The case dates to a 2014 investigation by the commission into Apple’s tax arrangements in Ireland, where its EU headquarters are located. The commission accused the company of receiving “illegal” tax benefits over the course of two decades.

The Irish government, which had sided with Apple, called the case one of “historical relevance” and reiterated its stance that it does not give preferential tax treatment to any company.

Meanwhile, Apple will incur a one-time tax charge of $10 billion in its fiscal quarter ending this month, in response to the ruling.

The company maintains that it has always paid taxes where required and lambasted the commission for trying to change the rules retroactively.

Separately, the bloc’s top court upheld a $2.6 billion antitrust fine against Google for favoring its own shopping search results over those of competitors.

The court upheld the original 2017 fine, ruling that the company’s behavior was discriminatory and hindered competition, Politico wrote.

Google expressed disappointment at the verdict, countering that it had made changes to comply with the commission’s ruling. However, critics said that the company’s adjustments have been insufficient.

This case is part of a larger antitrust campaign against Google, which is still contesting a record $4.74 billion fine related to its Android operating system.

Observers noted that both cases underscore the EU’s increasing regulatory pressure on tech giants, which has intensified under the new Digital Markets Act (DMA), a sweeping law that prohibits “self-preferencing” and enforces stricter oversight on companies, such as Apple, Google and Meta.