- The European Court of Justice (ECJ) has upheld the European Commission’s 2016 decision, requiring Ireland to recover €13 billion in unlawful state aid from Apple.
- Apple received tax benefits between 1991 and 2014 that the EU deemed illegal, providing the company with an unfair advantage.
- The ruling overturns a 2020 General Court decision, marking a definitive outcome in the long-running legal dispute.
Brussels/Luxembourg, September 10 (FinanceFlashNews.com) – The European Court of Justice (ECJ) has ruled that Ireland must recover €13 billion in unlawful state aid from Apple, overturning a previous ruling by the General Court in favor of the tech giant. This final ruling confirms the European Commission’s 2016 decision, which found that Ireland had granted Apple selective tax advantages that breached EU competition law.
Background of the Dispute
In 2016, the European Commission determined that between 1991 and 2014, Apple benefited from tax rulings issued by Ireland that allowed the company to significantly reduce its taxable profits. These arrangements were viewed as illegal state aid, incompatible with the EU’s internal market rules. The tax deals were granted to two Apple subsidiaries, Apple Sales International (ASI) and Apple Operations Europe (AOE), which, despite being incorporated in Ireland, were not considered Irish tax residents.
Legal Proceedings
In 2020, the General Court ruled in Apple’s favor, arguing that the European Commission had failed to sufficiently demonstrate that Apple had gained a selective advantage. However, following an appeal by the Commission, the European Court of Justice found errors in the General Court’s judgment and ruled that the €13 billion in tax benefits should be recovered by Ireland.
This landmark ruling sets a significant precedent in the EU’s efforts to combat unfair tax practices and enforce competition laws across its member states.
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Keywords: Apple, Ireland, European Commission, European Court of Justice, state aid, tax benefits, competition law
