Thursday, September 19, 2024

Big Tech’s Easy Ride Is Coming to an End

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Tech companies of a certain size have long expected an easy ride from authorities, and for good reason. They always got it. Apple Inc. for years abused loopholes to pay virtually zero tax in the European Union while generating record profits there, thanks to special treatment from Ireland, where it bases its European headquarters. Alphabet Inc.’s Google for years was able to entrench its dominance in search thanks to the special treatment the company gave its own shopping service over competitors.

Now Google and Apple are getting slapped for those blatantly unfair advantages. The EU is forcing Apple to pay €13 billion ($14.4 billion) in back taxes to the Irish government, and Google to pay a €2.4 billion fine for rigging its platform. For both, it’s the end of the line on appeals. Of course, the payments are just a cost of doing business — pocket change, really — and the companies can pat their lawyers on the back for dragging the cases out in court for years with endless appeals.

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