Google and Apple lose legal battles in Europe and now owe billions in fines and back taxes

LONDON (AP) — Google’s last attempt to overturn a European Union antitrust penalty was thwarted on Tuesday when the bloc’s top court upheld a €2.4 billion ($2.7 billion) fine imposed by the European Commission. This penalty, related to Google's comparison shopping service, marks a significant moment in the ongoing scrutiny of Big Tech companies in Europe.

The European Court of Justice rejected Google’s appeal against the fine, a decision that underscores the EU’s assertive stance on antitrust issues. In a related ruling, Apple also lost its challenge against a €13 billion ($14.34 billion) tax repayment order to Ireland, with the court siding with the European Commission in a case addressing unlawful state aid.

These rulings mark the end of the appeals process for both companies, dating back to cases from the previous decade. The decisions are seen as a victory for Margrethe Vestager, the European Commissioner for Competition, who is set to step down next month after a decade of overseeing competition policy.

Experts believe these rulings reflect an increased resolve among regulators to tackle perceived excesses of Big Tech. Alex Haffner, a competition lawyer at Fladgate, commented that the Apple ruling indicates a firm stance by EU authorities on holding Big Tech accountable. Gareth Mills of Charles Russell Speechlys noted that the Google decision shows a growing global confidence in regulating large tech firms.

The €2.4 billion fine was part of a series of significant penalties against Google. The European Commission had penalized the company in 2017 for unfairly promoting its own Google Shopping service over competitors. Google responded with disappointment, stating that it had implemented changes to comply with the Commission’s requirements, including holding auctions for shopping search listings.

European consumer group BEUC praised the court's decision, emphasizing its positive impact on European consumers and smaller competitors. Director General Agustín Reyna noted that the ruling ensures a more level playing field in the comparison shopping market.

Google is still contesting two other major EU antitrust fines: a €4.125 billion ($4.55 billion) penalty from 2018 related to its Android operating system and a €1.49 billion ($1.64 billion) fine from 2019 concerning its AdSense advertising platform. These cases were among the early indicators of increased regulatory efforts to control the tech industry. The EU has since expanded its investigations and introduced the Digital Markets Act (DMA) to further regulate online markets.

Vestager, who described the shopping case as a significant step in digital regulation, affirmed that the EU will continue to pursue competition cases and enforce the DMA, which aims to increase consumer choice and regulate tech giants’ practices.

In addition to EU scrutiny, Google faces investigations in the UK and the US over its digital advertising practices. The US Department of Justice has taken legal action against Google, alleging dominance in ad tech.

On the tax front, Apple's failure to overturn the tax repayment order is a notable victory for “tax justice,” according to Vestager. This case, dating back to 2016, drew criticism from Apple and then-US President Donald Trump, who criticized Vestager’s aggressive stance on tax deals involving US tech giants.