Google and Apple will have to pay dearly. The Court of Justice of the European Union has made final decisions on proceedings that have been conducted in the European Union for years.
On Tuesday, September 10, the Court of Justice of the European Union issued its judgments in cases involving the largest technology giants – Alphabet (Google) and Apple. After years of court battles, the final decisions were made, which will not be pleasant for American companies.
In 2017 The European Commission has fined Google around €2.4 billion. for abusing its dominant position in various national internet search markets by favouring its own comparison shopping service over those of its competitors. Since the General Court of the European Union essentially confirmed that decision and the fine imposed, Google and Alphabet appealed to the Court. The latter dismissed them in today’s decision, thus upholding the judgment of the General Court of the EU..
The Court recalled, that European Union law considers it unlawful not to have a dominant position but only to abuse it. In particular, practices by dominant undertakings which restrict non-price competition and may thereby harm both individual undertakings and consumers are prohibited. This refers to actions which, using methods other than non-price competition, hinder the maintenance or development of competition in a market where there are already difficulties related to the presence of one or more dominant undertakings.
Google and Apple to Get Paid Big in Their Pockets. CJEU Ruling Is Ruling on Companies
In 2016, the European Commission decided that Apple Group companies obtained tax benefits from Ireland between 1991 and 2014 that constituted state aid. This concerns Apple Sales International (ASI) and Apple Operations Europe (AOE). This aid was related to the tax treatment of profits made by Apple from its operations outside the United States. In 2020, the General Court of the European Union annulled the decision issued by the Commission, finding that the institution had not sufficiently demonstrated the existence of a selective advantage in favour of these companies. In ruling on the appeal, The Court set aside the judgment of the General Court and, in its final judgment, upheld the Commission’s decision..
According to the Court, the General Court erred in finding that the Commission had not sufficiently established that the intellectual property licenses held by ASI and AOE and the related profits from sales of Apple products outside the United States should be attributed to the Irish branches for tax purposes. As a result, the aid granted by Ireland to Apple was found to be unlawful. The Commission estimates that Ireland granted Apple illegal tax benefits worth €13 billion, which the company will have to repay.
Featured Image: Court of Justice of the European Union
Source: antyweb.pl
