The Court of Justice of the European Union confirms that Apple received unlawful state aid from Ireland
On 10 September 2024, the Court of Justice of the European Union (CJEU) has upheld the European Commission’s decision in 2016 that Ireland granted unlawful tax advantages to Apple, amounting to €13 billion. This judgment overturns the earlier 2020 decision by the General Court, which had annulled the findings of the European Commission due to insufficient evidence of selective advantage.
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.
2020 General court decision
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.
Final judgment
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 judgment 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.
