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Google and Apple Face Heavy Fines and Setbacks in EU Court Rulings

Associated Press
September 11, 2024 | 1:18 pm
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FILE - The Apple logo is illuminated at a store in the city center of Munich, Germany, Dec. 16, 2020. (AP Photo/Matthias Schrader, File)
FILE - The Apple logo is illuminated at a store in the city center of Munich, Germany, Dec. 16, 2020. (AP Photo/Matthias Schrader, File)

London. Google and Apple have both lost significant legal battles in the European Union, resulting in billions of euros in fines and back taxes.

On Tuesday, Google's final appeal to overturn a €2.4 billion (Rp 40.9 trillion) antitrust penalty was denied by the EU's top court. This fine, imposed by the European Commission, was for violating antitrust rules through its comparison shopping service. This ruling marks a critical moment in the ongoing scrutiny of Big Tech companies.

The same day, Apple also faced a setback as the European Court of Justice upheld a previous order requiring the company to repay €13 billion in back taxes to Ireland. This decision is part of a broader crackdown on state aid that allegedly favored global corporations.

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These rulings are a significant win for Margrethe Vestager, the European Commissioner for Competition, who is set to leave her post next month. The decisions underscore the EU's robust approach to regulating major tech firms, reflecting a growing confidence among global competition regulators.

"These rulings show that EU authorities are determined to enforce competition laws and hold Big Tech accountable," said Alex Haffner, a competition law expert at Fladgate. Gareth Mills, a partner at Charles Russell Speechlys, added that the decisions are likely to embolden regulators worldwide.

Google expressed disappointment, noting that the fine pertains to a "very specific set of facts." The company has since adjusted its practices, including holding auctions for shopping search listings to ensure fair competition.

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The European consumer group BEUC welcomed the court's decision, stating that it benefits European consumers by fostering competition and providing more choices.

Despite these penalties, the financial impact on Google and Apple is relatively small compared to their overall market value. Apple's stock dipped slightly following the ruling, while Alphabet (Google's parent company) saw a modest rise.

The court rulings come as part of broader regulatory efforts targeting Big Tech. The EU has implemented the Digital Markets Act (DMA) to prevent tech giants from monopolizing online markets. Meanwhile, Google faces additional scrutiny from the EU, the UK, and the US over its digital advertising practices.

Apple, facing its own tax challenges, has condemned the ruling as politically motivated. The case highlights ongoing global debates about tax fairness and the regulation of multinational corporations.

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