Europe’s top court ruled against Apple on Tuesday, ending a 10-year legal battle over its tax arrangements in Ireland. The case dates back to 2016, when the European Commission ordered Ireland to recover up to 13 billion euros ($14.4 billion) in back taxes from the tech giant.
The European Court of Justice’s ruling came just hours after Apple unveiled new products, including updates to its iPhone, Apple Watch, and AirPods lineups. Apple’s shares fell by about 1% following the decision.
The Irish government stated that the case is now of “historical relevance,” reiterating that it does not offer preferential tax treatment to companies. Apple, meanwhile, said it will incur a $10 billion tax charge in its fiscal fourth quarter, ending September 28, 2024.
Apple emphasized that the case centers around which government should receive the taxes, not the amount owed. “We always pay all the taxes we owe,” an Apple spokesperson said, criticizing the European Commission for attempting to change the rules retroactively. The government will now transfer the escrow fund’s assets to Ireland.
