The case dates back to tax rulings issued by Ireland between 1991 and 2007, which allowed two Apple subsidiaries—Apple Sales International (ASI) and Apple Operations Europe (AOE)—to minimise their taxable profits in Ireland. The rulings excluded profits generated by the use of intellectual property licences, on the basis that the relevant decisions were made by Apple’s head office in the United States.

The European Commission argued that this tax arrangement constituted illegal State aid under EU rules, as it unfairly reduced Apple’s tax burden in Ireland. The European Commission ordered Ireland to recover the aid, estimating the tax benefits to €13 billion.

Ireland, ASI, and AOE challenged the decision of the European Commission, leading the General Court to annul the ruling in 2020. The General Court concluded that the European Commission had not sufficiently demonstrated that Apple’s tax treatment provided a selective advantage.

On appeal, the CJEU reversed the General Court's decision, asserting that the European Commission was correct in its assessment. The CJEU ruled that the General Court erred in its interpretation of Irish tax law and in its evaluation of the allocation of profits to Irish branches of Apple. The final judgement confirms that Ireland's tax rulings violated EU State aid rules and the European Commission’s original order to recover the aid stands.

The CJEU press release can be found here.