Apple has lost its fight against an order it must pay €13 billion ($22 billion) in back taxes as part of a European Union crackdown on sweetheart deals between member countries and multinationals.

The European Commission issued the order in 2016, saying the iPhone maker benefited from two Irish tax rulings for more than two decades that artificially reduced its tax burden to as low as 0.005 per cent in 2014.

Apple had said the record EU tax order defied reality and common sense.

Ireland, whose low tax rates helped it to attract big tech to set up European headquarters, had also challenged the EU ruling.

Breaking news: Apple has suffered a significant defeat after the EU’s top court ruled that the iPhone maker must pay €13bn in back taxes, overturning an earlier decision in the Big Tech group’s favour https://t.co/zEcH3FRr0M pic.twitter.com/oGTRyXmGdC

— Financial Times (@FT) September 10, 2024

On Tuesday (local time), the Luxembourg-based Court of Justice of the European Union sided with EU antitrust chief Margrethe Vestager.

“The Court of Justice gives final judgment in the matter and confirms the European Commission’s 2016 decision: Ireland granted Apple unlawful aid, which Ireland is required to recover,” judges said.

Apple expressed disappointment with the ruling.

“The European Commission is trying to retroactively change the rules and ignore that, as required by international tax law, our income was already subject to taxes in the US,” the company said.

The ruling is final and cannot be appealed.

-Reuters