Following the European Commission's ruling that Apple must pay 13 billion euros ($14.5 billion) in back taxes because of its "undue tax benefits" in Ireland, The Wall Street Journal reported over the weekend that Apple is facing the EC "without the army of lobbyists and public relations campaigners typical in such fights."

The company's lack of a lobbying presence in Europe isn't new, however, as it spent less than €900,000 lobbying European institutions in 2015. According to public filings, in total Apple "doesn't employ any full-time lobbyists" in Brussels, and only five people work part-time. In contrast, Google spent "at least" €4.25 million in 2015, and employs more than ten people in lobbying positions in the European capital.

brussels_hero

Apple's retail location in Brussels

Sources familiar with the matter stated that Apple's "lack of a presence in the EU capital" led to it being unsuccessful in gathering information over the past few years about the impending tax evasion ruling from the European Commission. Still, a source close to the commission's competition office theorized that a heavier lobbying presence might not have been all that helpful for Apple in the end, since the lobbying tactics of a company like Google have not gotten it out of "many antitrust investigations" over the past few years.

Google’s experience with the commission’s many antitrust investigations over the years may suggest a bigger Apple lobbying presence in Brussels wouldn’t have had a meaningful impact on the regulator’s decision.

People familiar with the directorate say there is limited leeway for influencing the outcome of any competition investigation. The regulator can’t stray too far from previous case law in its decisions to ensure the ruling is upheld in court when the companies inevitably appeal it.

Still, “I don’t know what [Apple] would have done differently,” said a person close to the commission’s competition office. “It’s not a question of behavior; it’s a question of what’s in the numbers and what’s on the table.”

Many other America-based companies have a large presence in Europe, including Alphabet and Amazon, "which have built a European lobbying presence to try to sway investigations and potential legislation." The two companies have also tried to advertise the benefits that Europe gains from their presence, with Google launching a digital journalism initiative and Amazon highlighting its storefronts that facilitate the livelihood of small European businesses.

On the Apple side of things, Tim Cook has called the EC's ruling "total political crap" and described the lower end 0.005% tax rate as a "false number." Ultimately, the Apple CEO believes that the decision will be reversed, and most recently Ireland's coalition government agreed to appeal the ruling. Cook has stated that he has "faith in humanity" and "faith in what is just and right will occur."

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

iLondoner Avatar
99 months ago
I have a large investment in Apple shares so I'm clearly disappointed with any news that adversely affects Apple.

However as a European I am dismayed at the way that Luxembourg, Netherlands and Ireland have cheated their fellow EU members by offering low tax regimes. These have encouraged US companies such as Apple, HP, Dell, Starbucks, eBay, Amazon, Google (and the list goes on and on) to dishonestly book their sales not in the country where they were made, but in the low-tax haven.

The UK has lost billions in lost tax over the last decade or more.

A sign in a local independent bookstore proudly states that it has paid more tax in the UK than the whole of Amazon.
Score: 12 Votes (Like | Disagree)
captain kaos Avatar
99 months ago
Come over to the UK, we're getting out of this EU mess.
Score: 7 Votes (Like | Disagree)
Zarniwoop Avatar
99 months ago
Why is Ireland (and Apple) being punished for such an arrangement?
Because it is clearly stated in the EU common rules, and Ireland has agreed to follow them. Rules that state for example that giving any enterprise a special tax regime is illegal state aid. Ireland is abusing the system and driving profits from other states. You cannot join to 500 million people common market without rules.
Score: 6 Votes (Like | Disagree)
rp2011 Avatar
99 months ago
Lobbying? Just pay your taxes!

I love Apple but their shady tax dealings are shady tax dealings.

Exxon previously the most profitable company world wide has incredibly shady tax dealings and even gets subsidies from the US via lobbyists.
Legal?
Yeah!
Because of lobbyists?
Yeah!
Shady corrupt politicians?
Hell yeah!!

Does that make it right?
**** no!
Score: 5 Votes (Like | Disagree)
Stella Avatar
99 months ago
I would like to avoid using them all. The government enforced monopoly makes that difficult. People should pay for things that they use. Not have their money stolen and reappropriated by a government who thinks they know how to spend money better. They don't.
[doublepost=1474923602][/doublepost]

Private markets.
^

I'd hate to live in your world.. if you can't afford it, you don't get educated, die prematurely etc, where absolutely everything is about profits.

Fortunately.. there's "society" where we all contribute - to schools, healthcare, infrastructure and the rest for the benefits of everyone.
Score: 5 Votes (Like | Disagree)
macfacts Avatar
99 months ago
I don't see how what happened in Ireland is any different from what legally happens all the time in the US. For instance, I live in a town that wanted to bring in a Target distribution facility. Target is worth billions, but in order to get them to choose our town, the Mayor and City Council offered Target a 20-year tax abatement. So a corporation with billions to spend wouldn't have to pay any taxes to the town for the first decade, and then pay minimal taxes for the next ten years. Meanwhile, property taxes for residents continued to increase. (Target eventually decided not to build there.) This seems to be a common practice with big businesses. In order to attract them, cities hold a carrot in the form of lower taxes. Why is Ireland (and Apple) being punished for such an arrangement?
1. When you steal something and have to return it, that is not punishment. Apple or Ireland has not been fined yet. Having to pay taxes owed is not punishment.

2. What is legal in the States might not be legal in the EU.
Score: 5 Votes (Like | Disagree)

Popular Stories

iOS 18 Siri Integrated Feature

iOS 18 Will Add These New Features to Your iPhone

Friday April 12, 2024 11:11 am PDT by
iOS 18 is expected to be the "biggest" update in the iPhone's history. Below, we recap rumored features and changes for the iPhone. iOS 18 is rumored to include new generative AI features for Siri and many apps, and Apple plans to add RCS support to the Messages app for an improved texting experience between iPhones and Android devices. The update is also expected to introduce a more...
iGBA Feature

Game Boy Emulator for iPhone Now Available in App Store Following Rule Change [Removed]

Sunday April 14, 2024 8:06 am PDT by
A week after Apple updated its App Review Guidelines to permit retro game console emulators, a Game Boy emulator for the iPhone called iGBA has appeared in the App Store worldwide. The emulator is already one of the top free apps on the App Store charts. It was not entirely clear if Apple would allow emulators to work with all and any games, but iGBA is able to load any Game Boy ROMs that...
top stories 13apr2024

Top Stories: M4 Mac Roadmap Leaked, New iPads in Second Week of May, and More

Saturday April 13, 2024 6:00 am PDT by
Apple's hardware roadmap was in the news this week, with things hopefully firming up for a launch of updated iPad Pro and iPad Air models next month while we look ahead to the other iPad models and a full lineup of M4-based Macs arriving starting later this year. We also heard some fresh rumors about iOS 18, due to be unveiled at WWDC in a couple of months, while we took a look at how things ...
new best buy blue

Best Buy Opens Up Sitewide Sale With Record Low Prices on M3 MacBook Air, iPad, and Much More

Saturday April 13, 2024 7:41 am PDT by
Best Buy this weekend has a big sale on Apple MacBooks and iPads, including new all-time low prices on the M3 MacBook Air, alongside the best prices we've ever seen on MacBook Pro, iPad, and more. Some of these deals require a My Best Buy Plus or My Best Buy Total membership, which start at $49.99/year. In addition to exclusive access to select discounts, you'll get free 2-day shipping, an...
iGBA Feature

Apple Removes Game Boy Emulator iGBA From App Store Due to Spam and Copyright Violations

Sunday April 14, 2024 9:22 pm PDT by
Apple today said it removed Game Boy emulator iGBA from the App Store for violating the company's App Review Guidelines related to spam (section 4.3) and copyright (section 5.2), but it did not provide any specific details. iGBA was a copycat version of developer Riley Testut's open-source GBA4iOS app. The emulator rose to the top of the App Store charts following its release this weekend,...
iOS 18 Siri Integrated Feature

Apple's First AI Features in iOS 18 Reportedly Won't Use Cloud Servers

Sunday April 14, 2024 9:52 am PDT by
Apple's first set of new AI features planned for iOS 18 will not rely on cloud servers at all, according to Bloomberg's Mark Gurman. "As the world awaits Apple's big AI unveiling on June 10, it looks like the initial wave of features will work entirely on device," said Gurman, in the Q&A section of his Power On newsletter today. "That means there's no cloud processing component to the...