Apple and Google Lose EU Appeals, Must Pay Multi-Billion Dollar Fines

Europe’s top court issued bad news to both Apple and Google in a single day on Tuesday. The Silicon Valley tech giants have been appealing against fines issued by the EU, and the court ruled against both companies, meaning that they must cough up to the tune of 13 billion euros ($14.4B) for Apple and 2.4 billion euros ($2.7B) for Google.

It’s particularly bad news for Apple, which only the day prior celebrated the launch of the iPhone 16, as well as updating its Apple Watch and AirPod lineups during its annual September launch event. It marks the end of a ten-year long battle, in which the company was found to have gained tax advantages in Ireland, where it has its European headquarters. Apple CEO Tim Cook famously dismissed the case as “political crap,” but the Court of the Justice has now ruled that “Ireland granted Apple unlawful aid which Ireland is required to recover.”

Google’s fight has been with Europe’s Competition Commission, which ruled back in 2017 that the company had been using its price comparison tool to favor its own shopping results in search, making it hard for smaller European rivals to compete. At the time, the fine was the biggest antitrust fine the EU had ever issued to a single company, and twice as big as initially anticipated, showing that the EU was serious about making Big Tech play fair in the region. It has since been superseded by another fine, also issued against Google, over Android dominance.

The relationship between Silicon Valley tech titans and the EU has long been a fractious one. Europe’s regulations tend to be on the stricter side than those the companies must deal with in the US. But with global operations, they must comply with local laws in countries where they have a base. 

In antitrust cases like Google’s, the ruling has a direct impact on consumers in Europe, as in addition to paying a fine, the company must also change how it operates to give rivals a fair chance and shopper more choice. The impact of the CJEU’s ruling against Apple meanwhile will hit the company square in the purse strings. In spite of being a trillion-dollar company, Apple’s shareholders won’t be happy to endure a multi-billion dollar fine.

Representatives for Apple and Google didn’t immediately respond to request for comment.

“Today is a huge win for European citizens and tax justice,” said Margrethe Vestager, the European Competition Commissioner who has been at the helm of many cases holding Silicon Valley giants accountable. “Ireland now has to release up to 13 billion euros of unpaid taxes,” she said on X.