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Entertainment Apple shares easier pre-trading: EU Commission contests court ruling on Apple's taxes in Ireland - critics organize

14:30  25 september  2020
14:30  25 september  2020 Source:   finanzen.net

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critics of Apple's app store rules have joined forces in an organization.

INDRANIL MUKHERJEE/AFP/Getty Images © Provided by Finanz.net INDRANIL MUKHERJEE / AFP / Getty Images

Among the first 13 members of the coalition for app fairness are music streaming market leader Spotify and its competitor Deezer, the game company Epic Games and the publishers association European Publishers Council. The coalition presented on Thursday specifically denounced the 30 percent surrender of digital content and subscriptions that are sold via the Apple platform.

In addition, the members demand that other app stores than Apple's are allowed on the iPhone and that app providers there can also use other payment processing systems. Apple always replies to such criticism that the restrictions are necessary to ensure the safety of users - and that the app store operation is financed with the transfer. With subscriptions, the fees drop to 15 percent after the first year.

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Some coalition members have public disputes with Apple. For example, Spotify accuses the iPhone group of unfair competition before the EU Commission - because part of the subscription revenue would have to be given to him, while as a platform operator he could keep the entire income from his rival Apple Music service. Epic Games, makers of the popular online game "Fortnite", recently caused a sensation when it tried to bypass Apple by selling virtual content in violation of the app store rules. Apple then banned the app from the platform.

EU Commission contests court ruling on Apple's taxes in Ireland

The legal dispute over Apple's tax payments in Europe will continue - possibly for years: the EU Commission decided on Friday to take action against a court ruling in favor of Apple. Brussels is also of the opinion that Ireland has granted the iPhone manufacturer 13 billion euros in unjustified tax rebates for years.

The Apple One subscription bundle's best feature is actually the iCloud storage

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The decision of the competition supervision of 2016 was surprisingly overturned by the European court in July. The judges complained that the European Commission did not provide enough evidence that Ireland granted Apple illegal tax breaks between 2003 and 2014.

The Vice-President of the European Commission responsible for competition and digital policy, Margrethe Vestager, said on Friday that the second highest court had "made a number of mistakes", which is why she is appealing.

She also said the court has confirmed that EU governments must respect strict state aid rules when setting their tax policies. "Ensuring that all businesses, large and small, pay their fair share of the tax remains a top priority for the Commission," said Vestager.

Apple did not immediately comment on the decision. The total amount of 14.3 billion euros paid, including interest, will remain parked in an escrow account until the European Court of Justice, the highest court, delivers its judgment.

The Apple share was listed on the NASDAQ on Friday, at times 0.66 percent lower at 107.50 US dollars. (dpa-AFX / Dow Jones)

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