Today: Feb 14, 2025

EU Antitrust chief Margrethe Vestager scores big wins against Apple and Google: What it means for the future of Big Tech

5 months ago

This week, Margrethe Vestager, the European Union’s antitrust chief, achieved two major victories in her ongoing battle against Big Tech. Europe’s highest court backed the EU’s decisions against both Apple and Google in landmark cases that could reshape how tech giants operate within the bloc. These rulings come as Vestager nears the end of her term in November 2024, solidifying her legacy as one of the most aggressive regulators to take on global corporations reports Reuters.

Let’s break down these important cases, what they mean for the future of tech regulation, and why this matters to everyone—from EU citizens to multinational companies.

Apple’s €13 billion Irish tax battle

The first of these victories is a case involving Apple and a massive €13 billion ($14.4 billion) tax bill the EU ordered the company to pay back in 2016. The European Commission found that Apple benefited from illegal tax breaks in Ireland, allowing it to pay far less tax than most companies in the country. At its lowest point, Apple’s tax rate in Ireland dropped to an astonishing 0.005% in 2014.

Ireland had granted Apple what the court ruled was unlawful state aid, letting the company funnel its profits through Irish subsidiaries while enjoying a tax regime far more favorable than what’s available to most companies. This arrangement helped Apple, one of the world’s richest companies, avoid paying billions in taxes.

The Court of Justice of the European Union (CJEU) upheld the European Commission’s decision, declaring that Apple must pay back the €13 billion. The ruling sends a clear message that no company, no matter how powerful, is above the law when it comes to paying taxes.

For Vestager, this is a huge personal and professional win. In a post on X (formerly Twitter), she called it “a huge win for European citizens and tax justice.” The case highlights Vestager’s broader mission: ensuring that multinationals pay their fair share and that European countries don’t offer illegal tax breaks to attract business.

Apple’s response and Ireland’s role

Apple, as expected, isn’t pleased with the outcome. The company argued that it had already paid $577 million in taxes in Ireland during the years 2003 to 2014, claiming it had complied with all local laws.

Apple insists that most of its profits are taxed in the U.S., as required by international tax agreements. In a statement, Apple accused the European Commission of retroactively changing the rules, expressing deep disappointment with the court’s decision.

Meanwhile, Ireland—which has built its economy on being a low-tax haven for multinationals—initially fought the EU ruling as well. The country argued that its tax system, including the 12.5% corporate tax rate, was in line with international standards.

Despite its earlier resistance, Ireland has since been involved in global tax reform discussions. In a surprising move, it even agreed to raise its corporate tax rate as part of a broader global agreement—something that would have been unimaginable just a few years ago.

Still, Ireland’s tax revenues from multinationals have continued to rise, despite these reforms. It seems that even as tax rules tighten, the appeal of Ireland as a European headquarters for global tech companies remains strong.

Google’s €2.42 billion fine for Anti-competitive behavior

The second big victory for Vestager involves Google. The European Commission had slapped the search giant with a €2.42 billion fine in 2017 for abusing its dominance in the search market.

The Commission found that Google unfairly promoted its own price comparison shopping service over smaller competitors by giving it prime placement in search results.

This week, Europe’s top court upheld the fine, ruling that Google’s behavior was indeed discriminatory and violated EU competition rules. Essentially, Google was found to be stifling competition by pushing its own services at the expense of others, making it difficult for smaller European businesses to compete fairly.

Google, like Apple, expressed disappointment with the ruling, noting that it had already made changes to its practices in response to the 2017 decision. A Google spokesperson downplayed the ruling, saying it related to “a very specific set of facts” and suggesting that the company had moved on from the practices in question.

Why Google’s case matters

This ruling is part of a much larger fight between the EU and Big Tech over how digital markets are run. Over the past decade, Google has faced a series of antitrust cases in the EU, racking up a total of €8.25 billion in fines for various anti-competitive practices.

In addition to the Google Shopping case, Google is currently battling rulings involving its Android mobile operating system and AdSense advertising platform.

But it doesn’t stop there. Google is also in the crosshairs of EU regulators for its adtech business, where it’s accused of favoring its own advertising services. These newer charges could force the company to sell off parts of its adtech business, a significant shakeup for Google, given how central advertising is to its revenue.

These rulings are final—meaning Google cannot appeal. The EU is clearly drawing a line in the sand when it comes to competition, signaling that anti-competitive practices will not be tolerated in Europe’s digital markets.

What does this mean for the future?

So, what do these two cases tell us? First, the EU is showing that it’s not afraid to take on Big Tech, whether over taxes or competition. The Apple ruling is about more than just one company—it’s a signal to multinationals that favorable tax deals in certain countries won’t fly under the radar forever.

This case could encourage other countries to re-examine the kinds of tax arrangements they’ve made with big corporations.

Second, the Google case underscores that the EU will continue to crack down on companies that abuse their market dominance. In a digital age where tech companies hold enormous power, the EU is stepping up to ensure that smaller players aren’t pushed out of the market.

Both cases also raise important questions about the future of tech regulation worldwide. While the U.S. has been slower to regulate Big Tech in recent years, these decisions may inspire more aggressive action in other regions.

Vestager has become something of a trailblazer in holding tech giants accountable, and her work could influence policymakers beyond Europe.

Vestager’s legacy and what’s Next

With her term ending in November, these two wins cement Margrethe Vestager’s legacy as one of the toughest regulators to take on Big Tech. Over the past decade, she’s led the charge against corporate tax dodging and market abuses, making her one of the most influential voices in global regulation.

Her victories may embolden her successor to continue in the same vein, going after multinationals that don’t play by the rules. And with ongoing investigations into companies like IKEA, Nike, and others, the EU shows no signs of slowing down.

In a world where tech companies have more power and influence than ever, these rulings signal a clear message: no one is above the law—not even the biggest players in the game.

As the global conversation around tax fairness and digital competition heats up, the EU’s aggressive stance could pave the way for a new era of corporate accountability.

What happens next in the battle between regulators and Big Tech will shape the digital economy for years to come. And for Vestager, it’s a victorious finale to a career that’s changed the way we think about power in the tech world.

Fabrice Iranzi

Journalist and Project Leader at LionHerald, strong passion in tech and new ideas, serving Digital Company Builders in UK and beyond
E-mail: iranzi@lionherald.com

Leave a Reply

Your email address will not be published.