Skip to main content

European Union

See All Stories

Apple on EU iOS changes: Has done its best but DMA makes users less safe

App Store security

Apple is set to release iOS 17.4 to the public next week with a major update for EU users that allows third-party app stores and more. Now ahead of the Digital Markets Act going into effect, Apple has shared the most up-to-date and comprehensive resource about all the changes and its approach and “efforts to protect user security and privacy in the European Union.”

Expand Expanding Close

Mark Zuckerberg explains why there will be no Meta app store for iPhone in the EU

Meta Apple App Store

Many developers and tech companies didn’t react well to the changes proposed by Apple last month to comply with the European Union’s Digital Markets Act (DMA) antitrust legislation, and Mark Zuckerberg is on that team. The Meta CEO said on Thursday that he doubts developers will opt in to the new “onerous” terms set by Apple in the EU.

Expand Expanding Close

Apple to let developers request consultation on EU changes coming to the App Store

App Store European Union sideloading

Apple recently announced a series of measures to comply with the European Union’s Digital Markets Act (DMA) antitrust legislation, which includes allowing alternative app stores on the iPhone. To make sure developers understand what’s changing, Apple will let them request a consultation on the new guidelines announced last month.

Expand Expanding Close

Apple hasn’t even switched the iPhone to USB-C, and the EU is already complaining

USB-C iPhone EU flag

This year we’ve seen rumors that predict Apple’s USB-C on the yet-to-be-released iPhone 15 will be limited when it comes to data and charging speeds for non-MFi cables. Trying to prevent that – at least for the EU – commissioner Thierry Breton has given a warning to Apple four months ahead of the usual iPhone event.

Expand Expanding Close

Spotify says Apple’s DMA compliance must include these changes

Apple EU third-party app stores

As European Union officials work on the implementation of the Digital Markets Act (DMA) that formally went into effect last fall, a stakeholder workshop was held today by the European Commission to get input on “app store related provisions.” Spotify was one of the panelists and it shared three changes it feels Apple must be forced to make in the EU.

Expand Expanding Close

France taking Apple & Google to court for ‘abusive trade practices’ with developers

The French government is taking both Apple and Google to court, accusing the companies of ‘abusive trade practices’ in the way that they treat developers.

Reporting on the case is light on detail, but France appears to have three objections to the way the relationship works between app stores and developers …


Expand
Expanding
Close

Apple denies illegal state aid in Ireland, says it will stay there whatever happens

Site default logo image

20100803_CoventGarden_RZ_4751_adj

Called before the European Parliament’s tax committee yesterday to explain its tax arrangements, Apple’s VP of European operations denied that the company received illegal state aid, reports Bloomberg.

“We feel that we’ve paid every cent of tax that is due in Ireland,” Cathy Kearney said at the European Parliament in Brussels. “We don’t feel that there has been state aid involved and I suppose we look forward to that outcome happening at the end of the day and being vindicated in that way. I would say that the Irish government also agrees with that view.”

Kearney also denied suggestions that the special tax deal with the Irish company was the reason it had chosen the country as its European HQ …


Expand
Expanding
Close

Opinion: Why Apple is likely to end up paying that estimated $8B European back-tax bill – and more

LONDON, ENGLAND - APRIL 22: A general view of Apples' Regent St store on Earth Day at Regent Street on April 22, 2015 in London, England. (Photo by Ben A. Pruchnie/Getty Images for Apple)

The European Union warned us this week not to expect a speedy conclusion to the long-running investigation into the legality of Apple’s tax arrangements in Europe. The delay follows a decision back in December to expand the scope of the investigation.

But while the wheels of EU tax investigations may grind exceedingly slowly, I’d be willing to wager quite large sums of money on the final outcome. It looks to me increasingly clear that Apple’s tax arrangements with the Irish government are going to be declared illegal, and that Apple is going to be faced with a significant bill for unpaid tax …


Expand
Expanding
Close

EU competition chief warns “don’t hold your breath” on $8B investigation into Apple’s tax affairs

eu

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 …


Expand
Expanding
Close

Apple could owe more than $8B in back taxes if European Commission ruling goes against it – Bloomberg

apple-tax-ec

With a recent European Commission ruling making it look more likely than ever that Apple’s tax arrangements in Ireland will be declared illegal, Bloomberg has been doing the sums on how much the company may owe in back tax. The total? More than $8 billion.

Apple funnels all its European revenue through Ireland, where a special agreement with the Irish government means that it pays just 2.5% tax instead of the normal 12.5%. A long-running European Commission investigation into the legality of this arrangement was recently extended and expanded its scope.

Assuming the agreement is ruled to be illegal, it would be the Irish government – and not Apple – who broke the law, but Apple would still have to pay the difference between the tax it actually paid and the full amount that would have been due without the deal. The company warned shareholders last year that it may have to pay ‘material’ back taxes, but the figure calculated by Bloomberg is much larger than earlier estimates …


Expand
Expanding
Close

Belgian ruling increases likelihood that AAPL’s sweetheart tax deal in Ireland will be ruled illegal

Employees wear green shirts near Apple's familiar logo displayed with a green leaf at the Apple Store timed to coincide with Tuesday's annual celebration of Earth Day in Sydney, Tuesday, April 22, 2014. Apple is offering free recycling of all its used products and vowing to power all of its stores, offices and data centers with renewable energy to reduce the pollution caused by its devices and online services. (AP Photo/Rick Rycroft)

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

European investigation into legality of Apple’s tax arrangements in Ireland expanded & extended

the-eu-says-apple-may-have-avoided-billions-in-taxes-over-10-years

The long-running investigation into the legality of Apple’s tax arrangements in Ireland has been expanded, with the European Commission now seeking additional information from the Irish government, reports the FT. This means that the investigation is likely to be extended well into next year. A ruling had originally been expected before the end of the year.

While Irish authorities had expected the case to be concluded soon, they have instead been sent bulky sets of supplementary questions, meaning it will be difficult to reach a final verdict until after the 2016 election, which is expected as early as February […]

The Irish finance ministry confirmed that the government was supplying the requested additional information to the commission. “We do not expect any decision until after the new year,” said a spokesman.

If the ruling goes against Apple, it could face a bill for billions of Euros in underpaid tax …


Expand
Expanding
Close

Apple bringing 1,000 new jobs to Ireland, where Tim Cook describes Microsoft’s Surface Book as “deluded” [Updated]

apple9

Update: Apple has since stated that Cook intended to describe the Microsoft Surface Book as “diluted” rather than “deluded.”

The Irish government has announced that Apple will be employing an additional 1,000 staff in Ireland, the country where the company declares much of its revenue from sales throughout Europe, reports Reuters.

Ireland’s main foreign investment agency, the IDA, said Apple was to add 1,000 jobs to its office in Cork by mid-2017 from 5,000 at present. It said the company had also added 1,000 jobs in the past year.

There had been some concern about whether Apple would maintain a significant presence in the country if the European Commission investigation into Apple’s tax dealings in the country went against the company … 
Expand
Expanding
Close

Following Apple Music inquiry, European Union conclusion finds collusion unproven

Freedom?

The European Union’s inquiry into whether Apple had colluded with music labels to suppress competition from streaming music services like Spotify has concluded that no evidence exists to support such claims.

The investigation involved the questioning of executives from several of Apple’s partner labels to determine whether App Store limitations might “lock out” competitors.


Expand
Expanding
Close

European lawsuit over iWatch name shows why Apple had to choose ‘Apple Watch’

apple-iwatch-2015

A European trademark holder has filed a lawsuit against Apple over the name ‘iWatch‘, despite the fact that the company’s own product was ultimately named Apple Watch. The issue it seems is paid promotion on Google search ads when the term “iWatch” is searched. Since Apple’s smartwatch was long rumored to be called the iWatch, and many regulars (including Tim Cook) still refer to it as such, Cupertino figured people would search for ‘iWatch’ when looking for its new device and took out some Google ads for the keyword to take advantage. Search for ‘iWatch’ yourself and you’ll almost certainly see a link to Apple Watch as the top result…
Expand
Expanding
Close

Site default logo image

Europe finally agrees to abolish roaming charges – but not until 2017

eu-roaming

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 antitrust authorities investigating Apple’s streaming music service even before it launches

Site default logo image

juncker-team-a

Apple’s planned rebranding and relaunch of the Beats streaming music service has not had the easiest of rides. The launch, initially planned for earlier this year, was delayed by the departure of key execs and difficulties integrating Beats and Apple technologies. A planned $5/month price-point had to be abandoned in favor of an attempt at $7.99/month when music labels wouldn’t play ball, and that too now looks increasingly unlikely even though Google Play offered initial All Access Signups for a $7.99 locked in. And any plans to offer artist exclusives as an inducement now face competition from newly-relaunched Tidal.

Just when it seemed things couldn’t get any tougher, London’s Financial Times reports that the European Commission is considering launching an antitrust investigation into the service, even before it launches. The Commission has contacted several music labels to ask what deals have been done with Apple, says the FT.

The commission, which also has contacted Apple’s music-streaming rivals, is said to be concerned that the company will use its size, relationships and influence to persuade labels to abandon free, ad-supported services such as Spotify, which depend on licenses with music companies for their catalogues.

The newspaper implies that the investigation may have been triggered by a formal complaint by an existing streaming music service … 
Expand
Expanding
Close

Site default logo image

EU court says ebooks aren’t books, must be subject to higher tax rates

ebooks

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