Google and Apple Hit with $17 Billion Blow as EU Rejects Appeals in Major Cases

On Tuesday (September 10), The European Union's top court ruled against Apple and Google into two major legal cases, which is a big win for the European Union's attempt to control how these companies operate. The decision could also influence other countries to take similar actions.

In these cases, Apple and Google were accused of breaking rules, and both companies have been in legal battles with the European Union (EU) for years. The court's decision shows that the EU is serious about holding these big companies accountable.

Apple's Tax Case

One of the rulings involves Apple, which was told to pay back nearly $14.4 billion in unpaid taxes to Ireland. The EU said that Apple had made an unfair deal with the Irish government to pay very little taxes on its business in Europe, according to New York Times.

These deals gave Apple an advantage over other companies by allowing it to avoid paying its fair share of taxes.

Apple had earlier won a court case that canceled the fine, but the European Commission, which is in charge of enforcing EU rules, appealed the decision. On Tuesday (September 10), the court sided with the European Commission, saying Apple must pay the taxes.

Even though the fine is large, it's not a big financial hit for Apple, which is one of the richest companies in the world. The amount of money Apple owes is only a small fraction of its value.

Google's Antitrust Case

Meanwhile, the second ruling involved Google. The EU fined Google around $2.55 billion for unfairly promoting its own shopping service over those of its competitors.

Google's actions made it harder for other companies to compete fairly. This was considered an abuse of its power, breaking the EU's competition laws.

Google tried to appeal the fine, but on Tuesday, the court upheld the ruling, meaning Google must pay the fine.

The decisions against Apple and Google are important because they show that the EU is serious about controlling how big tech companies behave. For years, governments around the world didn't pay much attention to how companies like apple, Google, Amazon, and Facebook were growing and making money,

But now, many countries, including the United States, are starting to follow Europe's lead by looking more closely at how these companies do business.

In the US, both Apple and Google are facing more legal challenges. Google is being investigated by the Department of Justice for how it runs its digital advertising business, and Apple is under scrutiny for how it manages its App Store, according to AP News.