In the quest for the US presidency, the Republican candidate, Donald Trump, revealed that he had a conversation with Tim Cook, the CEO of Apple, regarding the hefty fines slapped on the tech giant by the European Union. When asked for comment, Apple remained mute on the said phone call’s legitimacy.
European regulators have been increasing their probes into global tech firms, in recent years, as part of their efforts to limit their influence and ensure competitive fairness for smaller businesses.
During a podcast session with Patrick Bet-David, Mr Trump recounted how Mr Cook called him up. He quoted Mr Cook as saying that the European Union had recently imposed $15 billion fine on the company. Additionally, they were slapped with another fine of $2 billion by the same regulatory body.
Last month marked a significant defeat for Apple as they lost a drawn-out legal fight with the EU, leading to a demand for a €13 billion payment in back taxes to Ireland, which is part of a broader clampdown. Moreover, at the start of this year, the firm had to deal with a $2 billion EU antitrust penalty for blocking its music streaming competitors by enforcing restrictions on its App Store.
During the podcast, which lasted close to 90 minutes, Mr Trump maintained that he would not allow these companies to be exploited while addressing Mr Cook.
Last month, the highest court of the EU ruled in favour of Apple and Ireland in a decade-long dispute with the European Commission over Apple’s taxation in the Republic. The final judgement from the European Court of Justice (ECJ) upheld the European Commission’s 2016 demand for Apple to compensate €13 billion in prohibited state aid, plus interest, to the Irish Government.
The Irish Government has been consistent in denying any favouritism towards businesses or taxpayers since the probe into Apple’s tax matters. In light of the General Court’s incorrect judgement in 2020, the ECJ’s ruling is final.
The European Competition Commissioner, Margrethe Vestager, celebrated this ruling as a significant victory for the commission and “tax justice” from Brussels, demanding that the held amount be handed over to the Irish State.
Apple has been operating in the Republic since the 1980s and its workforce in Cork exceeds 6,000. Ms Vestager highlighted the implications of the Apple situation, demonstrating how some nations exploit disparities and gaps in taxation systems to present themselves as a “more appealing location” for companies. The upcoming presidential election on November 5th has Mr Trump and Democratic candidate Kamala Harris in a tightly fought contest. – Reuters