Apple and Google finally ordered to pay record fines by Europe

In recent days, Google and especially Apple have been very present in the news thanks to their new product announcements. But this morning, the European justice system, as expected, dampened the euphoria of the two brands. The Court of Justice of the European Union (CJEU) ruled on Tuesday, September 10, on two cases concerning American companies. In broad terms, Google will indeed be fined 2.4 billion euros, and Apple will have to reimburse 13 billion euros to Ireland.

Apple: a case dating back to 2016

To understand Apple's situation and the decision of this court of last instance, we have to go back to 2016. Brussels had then ordered a reimbursement of 13 billion euros to Ireland. At issue, a tax reduction then considered to be illegal state aid. Between 2003 and 2014, Apple repatriated its revenues in Europe to the country in order to take advantage of its advantageous tax system.

Although over the years and through various twists and turns the decision will be cancelled and then come back on the table, it is now definitively ratified. Apple is therefore losing its battle here and will have to pay this hefty back tax.

Google is not forgotten by Europe

The judges took the opportunity to reject the appeal by Google and Alphabet over another fine: that of 2.4 billion euros against Google. This was imposed in 2017 for abuse of a dominant position in the online search market. The Mountain View firm was accused of having greatly favored its price comparison site to the detriment of those of the competition. Since then, the display of these results has been modified to comply with Europe's demands.

The fine is one of three imposed by the European Commission on Google in the last decade for various breaches of competition laws. In total, the company was fined €8.25 billion, the highest being €4.3 billion for its dominant position in the Android operating system.