D-Day for Apple, Google as EU court to rule on major cases

D-Day for Apple, Google as EU court to rule on major cases

Apple suffered a blow in November when a top EU court advisor recommended scrapping a previous victory
Apple suffered a blow in November when a top EU court advisor recommended scrapping a previous victory. Photo: Nicolas TUCAT / AFP
Source: AFP

A top EU court will rule on Tuesday in a 13-billion-euro tax case involving Apple and Ireland, and could also deliver a victory for Brussels by upholding a multi-billion-euro fine against Google, in two eagerly awaited decisions.

The rulings will be a huge test for the bloc's outgoing competition chief, Margrethe Vestager, who has suffered a series of setbacks in EU courts against her decisions.

The final decisions are expected to be published after 0730 GMT.

One of the most bitter legal battles between the European Commission and big tech, the Apple case dates back to 2016 when the EU's executive arm claimed Ireland allowed the iPhone maker to avoid billions of euros in taxes.

It had been one of several investigations in the previous decade into sweetheart tax arrangements between major companies and several EU countries.

Read also

Asian markets battle to match Wall Street rally ahead of US inflation

The iPhone maker gained the upper hand in the long-running Ireland case in 2020, when the EU's General Court annulled the order for Apple to pay the taxes owed -- a decision Brussels appealed.

But Apple was dealt a blow in November last year when the top legal adviser of the higher European Court of Justice recommended scrapping that decision, saying it was peppered with legal errors.

The Luxembourg-based ECJ's judges must now decide whether to throw the case back to the lower EU court -- which could later force Apple to pay the 13 billion euros.

The EU will hope the decision goes its way as Brussels has faced difficulty defending its tax enforcement moves in recent years, with previous cases lost against Amazon and Starbucks.

Google's vice tightening

Read also

Europe needs 'unprecedented' investment surge, says key report

The commission will also hope for a definitive victory on Tuesday in the Google case, with expectations the court will uphold a 2.4-billion-euro ($2.6-billion) fine after a top adviser recommended such a move in January.

Although such advisory opinions are not binding, they do carry weight and are often followed by EU judges in their rulings.

The EU levied the fine in 2017 after finding that Google abused its dominant position by favouring its own Google Shopping service in results from its search engine.

It was not Google's only fine. The company was hit with record fines worth around eight billion euros for violating EU competition rules between 2017 and 2019.

Google faces yet another test next week when the top EU court will decide on the smallest of those fines, worth around 1.49 billion euros.

The legal headaches for Google are mounting across the Atlantic as well.

A trial began on Monday in the United States where the government accuses Google of dominating online advertising and stifling competition.

Read also

ECB to deliver fresh rate cut as inflation cools

It comes after a US judge ruled last month that Google maintained a monopoly with its search engine.

Google's so-called ad tech -- the system that decides which online adverts people see and how much they cost -- is an area of particular concern for regulators worldwide.

Brussels in a preliminary finding last year accused Google of abusing its dominance of the online ad market and recommended the US company sell part of its ad services to ensure fair competition. Google had the right to respond and the probe remains open.

Separately, Britain's competition watchdog on Friday concluded Google employs "anti-competitive practices" with regards to online advertising after a two-year investigation.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.