The European Court of Justice (ECJ) has ordered Apple to repay 13 billion euros (£11 billion; $14 billion) in unpaid taxes to Ireland.
The European Commission accused Ireland of giving Apple illegal tax benefits eight years ago, but the Irish government has opposed repaying the tax.
“The Court rendered its final judgment on the matter and confirmed the European Commission’s 2016 decision that Ireland had provided illegal aid to Apple and that Ireland must withdraw that aid,” the court said.
The news comes a day after the tech giant unveiled its new iPhone 16 series.
“This case has never been about how much tax we pay, but which government we need to pay our taxes to. We always pay all the taxes we owe, no matter where we do business, and there is never any special deal.
An Apple representative said: “Apple is proud to be an engine of growth and innovation in Europe and around the world, and to remain one of the world’s largest taxpayers.”
The ruling means that, after a lengthy legal process, the European Court of Justice has finally upheld a decision made by the European Commission eight years ago.
The decision covers the tax treatment of profits generated by Apple’s two Irish subsidiaries between 1991 and 2014.
These tax arrangements are considered illegal because other companies cannot gain the same advantages.
“The European Commission is trying to change the rules retroactively and ignores the fact that our income is already taxed in the United States, as required by international tax law.
Apple added: “We are disappointed with today’s ruling as the General Court previously reviewed the facts and categorically dismissed the case.”
The original ruling comes as the European Commission attempts to crack down on multinational giants, which it believes are using creative financial arrangements to reduce taxes.
The lower court of the European Court of Justice overturned the ruling in 2020 following an appeal by Ireland.
That judgment has now been quashed by the High Court, which said it contained legal errors.
This means Ireland will have to claw back lost tax revenue from Apple – something Dublin has been trying to avoid in legal battles for years.
The European Supreme Court also ruled Google must pay €2.4 billion (£2bn) was fined for abusing its dominant market position in its shopping comparison service.
The tech giant has been appealing the fine imposed by the European Commission in 2017.
It was the largest fine ever issued by the European Commission at the time – although Google received a larger fine of €4.3 billion in 2018 for allegedly using Android software to unfairly promote its own apps.
Like Apple, the decision ends Google’s long-running lawsuit.
