Europe’s top court has imposed massive fines on tech giants Apple and Google, reinforcing the region’s tough stance on Big Tech regulation. The European Court of Justice (ECJ) recently upheld the European Union’s rulings against the two U.S. companies, levying combined penalties of over $17 billion.

Apple’s Tax Battle with Ireland

Apple has been ordered to pay €13 billion ($14.3 billion) in back taxes to Ireland, stemming from a long-standing legal feud over the company’s tax arrangements. The European Commission argued that Apple’s tax deals with Ireland amounted to illegal state aid, enabling the tech company to pay an effective tax rate as low as 0.005% in 2014. Apple had previously challenged the ruling in 2020 but lost the appeal, marking a major victory for the EU’s outgoing antitrust chief, Margrethe Vestager, who spearheaded the campaign against tax avoidance by multinational corporations.

Apple expressed disappointment with the decision, claiming it always paid taxes in compliance with the law. Nonetheless, the ruling is seen as a broader message from the EU that it will continue to crack down on unfair tax practices by powerful corporations operating within its borders.

Google’s Antitrust Violation

On the other hand, Google was fined €2.4 billion for breaching EU antitrust rules by favoring its own Google Shopping service over competitors. This fine, originally imposed in 2017, was reaffirmed by the ECJ, which dismissed Google’s appeal. The court ruled that Google’s behavior restricted competition, depriving consumers of a fair choice between services. This decision reaffirms the EU’s commitment to ensuring that even the largest players in the digital economy are held accountable for anti-competitive practices.

While both companies remain dissatisfied with the court’s decisions, the rulings underscore Europe’s determination to regulate Big Tech and level the playing field for competitors, highlighting the EU’s assertiveness in enforcing tax justice and fair competition.