With a long-running investigation into the legality of Apple’s tax arrangements in Europe not expected to end any time soon, the company will come under additional pressure tomorrow when it is called before the European Parliament’s tax committee.

European Union competition chief Margrethe Vestager has warned reporters not to expect a quick decision from the investigation into whether or not Apple’s tax arrangements in Europe are legal, reports Bloomberg.

“Don’t hold your breath,” she told reporters in Brussels on Monday about the timing of decisions targeting Apple and online shopping giant Amazon.com Inc, whose tax affairs in Luxembourg are also under intense scrutiny. “I’m just warning you.”

Apple uses Ireland as its European headquarters, funneling most revenue through the country, where it has a special arrangement with the Irish government to pay corporation tax of just 2.5%. The EU believes this arrangement may be illegal for two reasons …

The European Commission has ruled that tax breaks offered by Belgium to multinational companies are illegal, and that the companies concerned must pay the full rate of tax due in the country, reports VentureBeat. This follows similar decisions in Luxembourg and the Netherlands.

While none of these rulings directly impact Apple, they do make it look extremely likely that the Commission will reach the same decision in Ireland, where Apple pays just 2.5% corporation tax instead of the normal 12.5%.

The Irish government offered Apple the special deal in order to encourage the company to choose the country as its European headquarters. The European Commission has been running a lengthy investigation into the legality of this arrangement, and has recently extended and expanded its scope.

If Ireland is indeed found to have broken the law, Apple will have to pay the difference in tax for up to ten years. The total amount was estimated last year at $2.5 billion. Apple warned shareholders at the time that it may face ‘material’ back taxes should the decision go against it.

The EC isn’t the only entity unhappy with Apple’s tax arrangements in Ireland either. The Italian government accused Apple of failing to declare more than $1.3 billion of corporation tax in the country as a result of funneling profits through to Ireland. Apple, which has 16 retail stores in the country, recently agreed to pay the full €318M ($347M) claimed by the Italian tax office.

Photo: AP Photo/Rick Rycroft

Europe is an odd place to live. In some respects, it acts like one big country (you can drive across it without ever seeing a border or showing a passport), while in other ways it is very definitely individual countries – like paying roaming charges outside your own country for calls, text messages and data.

We’ve been promised an end to roaming charges for what feels like forever, and the good news is that after years of discussion and debate, the European Union finally agreed to a date. The bad news is that the date isn’t until June 15th 2017.

It means that from 15 June 2017 you can use your mobile device when travelling in the EU paying the same prices as at home (domestic prices). For instance, if you pay for a monthly volume of minutes, SMS and data in your country, any voice call, SMS and data session you make while travelling abroad in the EU will be deducted from that volume as if you were at home, with no extra charges. This means the end of roaming charges as Europeans experience them today in their daily life.

The EU has gradually imposed caps on roaming charges, and the current ones of €0.19/minute for calls and €0.06 per text message aren’t too bad, but €0.20/MB for data is the killer, making it easy to rack up a hefty bill with perfectly normal use of a smartphone in other European countries.

The EU has also agreed to net neutrality rules, though watered down with exceptions for ‘innovative’ services that require higher than usual bandwidth – like Netflix. The EU says that these services can be prioritized so long as this doesn’t harm other services, but as everyone would otherwise get the fastest speed for everything, this provision doesn’t appear to have any real meaning.

European no-frills airline EasyJet seems to have taken a full-service approach to its new app, dubbed Mobile Host. The app aims to provide proactive, location-based guidance to passengers from one end of their journey to the other.

The app begins with check-in reminders, guides you to the baggage-drop if you have luggage, tells you when your gate is open and navigates you there, opens your boarding pass when you get there, and directs you to the correct baggage carousel on arrival. The service goes live at London Gatwick Airport today, with other airports to follow.

easyJet’s Mobile Host is a joint initiative with Gatwick and combines live data from the airports information systems, using Google indoor maps, together with a passenger’s booking details, location and flight time.  The result is personalised instructions and updates for passengers during their journey.

The app is currently iPhone-only, and is available in seven languages. The new app was not on the App Store at the time of writing, but if you download the current app, it should update.

EasyJet last updated the app a few weeks ago to add support for the Apple Watch. It was one of the first European airlines to support Passbook boarding passes, and started using iBeacons for location-based alerts last summer.

Europe’s top court has declared that ebooks are ‘services’ rather than books, and that European countries are not allowed to give them the same favorable tax treatment as paper books. The reasoning, such as it is, is that ebooks cannot be used without a physical device, and ebooks are a service provided to those devices.

Both France and Luxembourg have applied to ebooks the same reduced rate of VAT (sales tax) enjoyed by books made from crushed trees. The WSJ reports that the EU has ruled that this is illegal.

Since 2012, France has applied a 5.5% VAT rate and Luxembourg a 3% VAT rate on e-books, the same rate as for paper books. The European Court of Justice said both countries must apply their normal VAT rate, which for France is 20% and for Luxembourg is 17%.

Europe already closed one ebook-related tax loophole: Amazon used to use its Luxembourg base as a reason to charge just 3% on ebook sales throughout Europe, but a change in the law forced it to apply the VAT rate applicable to the customer’s own country.

There is some small hope that sanity may prevail in future. The European Commission has said that there may be legal mechanisms through which countries can in future define their own policies, with an “extensive overhaul” of VAT rules to be completed next year. However, don’t be surprised if ‘harmonization’ of tax rates for paper and digital books results in higher taxes on the former to pay for lower taxes on the latter …

Apple of course had its own legal troubles around ebooks, with its pricing model found to amount to anti-competitive practices.

Via Engadget

After years of annual rumors that each successive iPhone would feature NFC, there was understandable skepticism when the rumor rolled around again this year for the iPhone 6. It was looking like Apple might have put all its short-range communication eggs in one basket with Bluetooth LE.

Instead, of course, the iPhone 6 and 6 Plus got NFC as the mechanism for Apple’s contactless payment service, Apple Pay. Pando suggests that the company’s timing may not be entire coincidental.

While U.S. banks have so far ignored the more secure chip-and-pin cards used in Europe, sticking doggedly to magnetic strips and signatures, all that will be changing next year. As of October 2015, banks are switching to chip-based cards – and that means merchants will need to upgrade their payment terminals.

You can still get chip-reading terminals without NFC, but it’s likely that the vast majority of stores will opt to go contactless at the same time. Which means that instead of the 220,000 places you can use contactless payment today, there will be much closer to nine million outlets by this time next year – and you’ll be able to pay with your iPhone 6 at any of them.

U.S. card issuers are already pushing Apple Pay, MasterCard running a full-page ad in today’s New York Times (via Business Insider).

A few weeks after Apple was granted a European trademark on the key design elements of its retail stores, the company has been awarded a U.S. patent on the iconic glass cube design of its Fifth Avenue store in Manhattan. Steve Jobs is one of those credited as an inventor.

Patently Apple reports that Apple also applied for a trademark for the design back in 2010, but no decision has yet been made on that.

Apple was granted a patent for the similarly iconic glass cylinder design for its Shanghai store back in 2012.

Apple has been renewing the interior design of its stores around the world, and creating a new organizational structure as Angela Ahrendts focuses on further international expansion. It is reportedly working on the largest Apple Store in the world in Dubai.

Apple and Samsung will largely own the smartwatch market between them, predicts Jackdaw Research chief analyst Jan Dawson in a report being issued later today and seen by Re/code.

Dawson said that new players should “stay out of the market,” and existing players should scale back their plans.

“We do not recommend that existing vendors should maintain current levels of investment when market growth and the overall revenue opportunity remain poor,” Dawson said. “It is unlikely that more than one or two small vendors will be able to make a sustainable business out of smartwatches in the face of competition from Samsung and […] Apple” …