Apple lost its appeal on Tuesday against an EU order to pay €13 billion ($14.4 billion) in back taxes to Ireland, a significant case in the EU’s crackdown on favorable tax deals between member states and multinational companies.
The European Commission issued the order in 2016, arguing that Apple benefited from two Irish tax rulings over two decades that lowered its tax rate to as little as 0.005% in 2014.
Apple had called the EU’s decision “defying reality and common sense,” and Ireland, whose low tax rates have attracted Big Tech companies to establish European headquarters, also contested the ruling.
However, the Court of Justice of the European Union upheld the decision, siding with EU antitrust chief Margrethe Vestager. The court stated, “Ireland granted Apple unlawful aid, which it must now recover.”
Apple expressed disappointment, accusing the Commission of attempting to retroactively change tax rules, claiming its income was already taxed in the U.S. under international tax laws.
The ruling is final and cannot be appealed.