Recently, the attention of the world community is increasingly focused on regulating the activities of technological giants, which for a long time remained outside the strict control of state authorities. The European Union, in particular its antimonopoly bodies, have repeatedly stated the need to create fair conditions for all market participants. Technology corporations such as Google and Apple, thanks to their dominance in the digital space, have been the subject of numerous investigations for abuse of monopoly power and disproportionate profits. However, the latest court decisions of the European Court have set an important point in these cases, which will have far-reaching consequences not only for the companies themselves, but also for the European Union as a whole.
Last Tuesday was a real triumph for the antimonopoly authorities of the EU: the European Court of Justice in the final instance confirmed the fine of 2.4 billion dollars, which must be paid by Google. The reason for this decision is the manipulation of search results, when the company preferred its own price comparison service, which violated the rights of competitors and consumers. Thus, the court ruled that Google abused its dominant position in the market.
At the same time, the court issued another, no less important decision: the Apple concern must return 13 billion euros received in the form of tax benefits, which, according to the court, were illegally provided by Ireland. These two verdicts indicate the determination of the European Union in the fight for fair market conditions and fair taxation in the globalized world.
What foreign media write
The politics – Denmark. In connection with the criticism expressed in Mario Draghi’s report, these court decisions send an important signal, writes Copenhagen’s Politiken:
“It is also important that Europe succeeds in creating fair and transparent conditions for competition and taxation in a globalized world. And last Tuesday brought really good news in this regard: the European Union and [Danish European Commissioner for Competition Margrethe Vestager, who is stepping down ] won the court case against Google and Apple. In addition to multibillion-dollar damages, the decision of the EU Court gives reason to believe in the ability of the European Union to ensure fair regulation of the technological giants.”
The Spectator – Great Britain. The London weekly The Spectator writes that this verdict is a manifestation of excessive intervention:
“Ireland must now hold Apple accountable and demand billions of euros from the company. But the most important and frightening thing about this story is that Ireland does not want to do it at all! EU pressure on Ireland to make it abandon its own democratic aspirations and hold Apple accountable for ‘non-payment of taxes’ is an impermissible interference in the internal affairs of the country. The right to set tax rates for both companies and citizens is key to the sovereignty of the nation, which the EU has now taken away from Ireland.”
The Irish Times – Ireland. The dubious tax policy that Ireland pursued in the past has now returned to the country with a boomerang, states The Irish Times of Dublin:
“The finding that Ireland has breached the rules governing state subsidies is significant and will make Ireland blush and deal a serious blow to its reputation. In recent years, Ireland has changed its tax rules in line with international agreements and joined the new OECD Business Tax Agreement . It was the right move, which now provides a certain level of immunity from criticism. However, the conclusion that an illegal government subsidy took place is a serious one, even if it happened many years ago.”
