EU Challenges DecisionPermitting Apple to Evade $15.8 Billion in Tax Obligations as Perked by European Union
In the ongoing saga of the Apple tax case, known as the State aid case SA.38373 or the case against Ireland regarding alleged illegal state aid to Apple, a significant development has arisen. The European Commission is considering a re-examination of the case, which could potentially lead to an appeal at the Court of Justice of the European Union (EuG) or the European Court of Justice (EuGH).
Who is Pressing for the Commission to Review?
The European Commission is not being pressured from external sources to review the decision, but it has the power to decide to appeal the EuG judgment itself.
In concrete terms, following the EuG's 2020 ruling that the Commission had not proven an illegal subsidy, the Commission initially announced it would review the judgment and potentially lodge an appeal (at the EuGH). This is an internal decision-making process. Externally, the Commission or its representatives (EU Commissioners, particularly for Competition) are not typically instructed in such cases – unless the European Parliament or national governments exert political pressure.
Allocation of Responsibility
- The General Directorate Competition (DG COMP) of the European Commission bears central responsibility for such cases.
- Politically responsible is the EU Commissioner for Competition (currently Margrethe Vestager, as of September 2025), who sets the strategy.
- Legally, a appeal would be prepared by the Legal Service of the Commission.
What Happened?
- 2020: The EuG overturned the Commission's decision against Apple and Ireland.
- 2020/2021: The Commission announced it would review the judgment and potentially lodge an appeal.
- 2022: The Commission halted its review and decided not to appeal at the EuGH – no appeal was filed.
- September 2025: There are currently no active requests from the Commission for a revised judgment, as the case has not been pursued internally.
Conclusion
No external entity has pressured the Commission to request a revised judgment – such a decision could only have been made by the Commission itself, through its Competition department (DG COMP) and the responsible Commissioner. After internal reviews, the Commission, however, did not lodge an appeal and thus did not pursue the case further.
As of September 2025, there are no current demands from the Commission in this matter.
Meanwhile, powerful corporate lobbies have rallied against the EU's tax probe of Apple and have advocated for revised U.S. tax law that makes it easier for corporations to return foreign profits to the U.S. with reduced tax bills. The European Union is currently appealing a court ruling that let Apple off scot-free regarding a $15.8 billion tax bill. The EU competition commissioner, Margrethe Vestager, lost a major case last year demanding Apple pay $16 billion in taxes. The EU General Court found that EU authorities failed to meet the legal standard to show Ireland or Apple were in violation of international law. EU competition officials argue that the Irish government offered an illegal sweetheart deal to Apple, giving it an unfair advantage.
The U.S. government aims to shield Apple from consequences because its status as one of the most lucrative companies in the world cements the U.S. as the dominant country in the consumer tech space. The U.S. Treasury backs Ireland's position that it should not collect the tax revenue, as it aims to convince Apple to repatriate its offshore accounts to the U.S. France and the UK are passing their own taxes on digital services, and it remains to be seen whether Joe Biden's White House will follow through with retaliatory trade tariffs in response. Apple has maintained that it has always abided by the law in Ireland, as stated in a response to Bloomberg.
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