Highlights

  • The European Union's top court rejected Apple's last appeal
  • Now, the company has to pay €13 billion in back taxes to Ireland
  • In 2020, Apple had won a favorable ruling from the EU's General Court

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Huge Tax Blow For Apple In Europe Right After Launching iPhone 16

Apple has lost its final legal challenge in the EU, with the top court ruling the company must pay €13 billion in back taxes to Ireland. This comes after years of disputes over illegal tax breaks that the EU deemed unlawful aid.

Huge Tax Blow For Apple In Europe Right After Launching iPhone 16

The European Union's top court on Tuesday rejected Apple's final legal challenge against an order from the bloc's executive commission to repay 13 billion euros in back taxes to Ireland, bringing an end to the long-running dispute.

The European Court of Justice overruled a lower court's earlier decision in the case, saying it “confirms the European Commission's 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover.”

The case drew outrage from Apple when it was opened in 2016, with CEO Tim Cook calling it “total political crap.”

Then-US President Donald Trump slammed European Commissioner Margrethe Vestager, who spearheaded the campaign to root out special tax deals and crack down on big US tech companies, as the “tax lady” who “really hates the US.”

In its 2020 ruling, the European Union's General Court disagreed with the European Commission, the bloc's executive branch, which had accused Apple of striking an illegal tax deal with Irish authorities so that it could pay extremely low rates.

"We are disappointed with today's decision as previously the General Court reviewed the facts and categorically annulled this case,” Apple said in a statement.

“There has never been a special deal," the company said.

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Frequently Asked Questions

The European Union's top court rejected Apple's final legal challenge, ordering Apple to repay €13 billion in back taxes to Ireland.

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