The Court of Justice of the European Union (CJEU) handed down decisive rulings against Apple and Google on Tuesday. These cases represent a major breakthrough in the regulation of the technology sector in the 27 countries of the European Union.
In the Apple case, the CJEU upheld the European Commission's order issued in 2016, which required Ireland to recover €13 billion in unpaid taxes from Apple. The company was found to have made illegal agreements with the Irish government to reduce its tax burden.
Apple argued that it had already paid taxes in the US and that the case was not about the amount of tax, but about which government had the right to collect. Despite its objection, the money, which had been placed in an escrow account, will be transferred to the Irish treasury.
In the Google case, the court upheld a €2.4 billion fine imposed in 2017. The penalty was a consequence of Google giving preference to its own price comparison service in search results, to the detriment of competitors.
Google expressed disappointment at the ruling, although it had already made modifications to comply with the original decision. The company claimed that its changes have generated millions of clicks to other price comparison services, although some competitors argue that the adjustments have not been enough.
Both cases are emblematic of the EU's strategy to rein in big tech companies, led by competition commissioner Margrethe Vestager. According to the New York Times, Vestager highlighted the importance of these decisions as the start of a new era in digital antitrust regulation. She added that the Google case laid the groundwork for other countries to step up oversight of the technology sector.
These cases have also highlighted the slow regulatory process in the EU. Despite significant sanctions against Apple and Google, slow implementation of the rulings has allowed both companies to maintain their market dominance for years.
The EU has sought to speed up its procedures by passing the Digital Markets Act in 2022, which gives regulators greater power to fine big tech platforms and force them to change their business practices.
