ECJ: costly rulings against Google and Apple
The EU's competition watchdogs celebrated two victories on Tuesday: Europe's top court, the European Court of Justice upheld a 2.4 billion euro fine against Google for favouring its own price comparison shopping service over its competitors, thereby abusing its dominant market position. And Apple must repay 13 billion euros in illegal tax breaks granted to the company by Ireland, the judges also ruled.
Urgently needed encouragement
The rulings send an important message also in view of the criticism in Draghi's report, Politiken points out:
“In a globalised world it is crucial that Europe also succeeds in creating fair and transparent competition and tax conditions. And on this point there was good news on Tuesday when the EU and outgoing Danish EU Competition Commissioner Margrethe Vestager won the court case against Google and Apple, respectively. ... In addition to the billions in damages, the ruling by the EU Court of Justice allows us to hope that the EU can indeed subject the technology giants to fair regulation.”
Ireland is being strongarmed
The ruling is an assault on Ireland's sovereignty, The Spectator fumes:
“Ireland must now go after Apple and demand billions of euros from it. But here's the thing, the crucial thing, the chilling thing: Ireland doesn't want to do this. ... The EC's strongarming of Ireland to put aside its own petty democratic desires and go after Apple for 'unpaid taxes' represents an intolerable intrusion into Ireland's internal affairs. The right to set taxes, for both corporations and citizens, is central to a nation's sovereignty. It is one of the most important rights of free states. It's a right Ireland has now effectively been robbed of by the EU.”
Embarrassing and just punishment
Ireland's dubious fiscal past is catching up with it, The Irish Times puts in:
“The finding that Ireland illegally breached State aid rules is important - and embarrassing - and will do some considerable damage to Ireland's reputation. ... Ireland has changed its tax rules in recent years in tandem with international agreements and has signed up to the new OECD corporate tax deal. This was the right thing to do - and provides some bulwark now against criticism. Nonetheless, the finding of having offered an illegal State aid is serious, even if it happened many years ago.”