Jurisdiction

Irish government responds to Apple tax ruling as a historical matter

The Irish government responded to a European court ruling on Tuesday that found it had granted Apple unlawful tax benefits, stating the issue is now ‘of historical relevance’ due to changes in its tax system. The ruling stems from a 2016 European Commission order requiring Ireland to recover 13.8 billion euros from Apple, which had benefited from Irish tax rulings that reduced its tax rate to as low as 0.005% in 2014.

Ireland has consistently contested the order, asserting it does not offer preferential tax treatment to companies. However, the Court of Justice of the European Union upheld the decision, confirming that Apple paid insufficient taxes and that more needed to be recovered.

Since the 2016 ruling, Ireland has significantly reformed its corporate tax laws, aligning with international agreements and addressing corporate residence and profit attribution for non-resident companies operating in the country. The government will now begin releasing funds from the escrow account holding the recovered amount.

Apple loses €13 billion EU tax case

Apple has lost its battle with the European Union over a €13 billion tax payment dispute, marking a major win for the EU regulators. The European Commission initially ordered the payment in 2016, accusing Apple of benefiting from favourable Irish tax rulings that significantly reduced its tax obligations. These sweetheart deals allowed Apple to pay as little as 0.005% tax in 2014.

Apple and Ireland challenged the decision, arguing that the ruling defied logic, especially since Ireland’s low tax rates were instrumental in attracting major tech firms. However, the Court of Justice of the EU upheld the Commission’s order, declaring that Ireland had provided Apple with illegal state aid, which now must be repaid.

Apple expressed disappointment, accusing the EU of retroactively changing tax laws and arguing that its income had already been taxed in the US. The final and non-appealable ruling is a significant step in the EU’s efforts to clamp down on favourable tax deals for multinational corporations.

Nepal lifts TikTok ban after ten months

The Nepalese government has lifted the ban on TikTok after nearly ten months, following a cabinet meeting on 22 August 2024. This decision came after discussions with ByteDance representatives, who agreed to several conditions for TikTok’s operation in Nepal. These conditions include registering as a business, appointing a local contact, promoting tourism, supporting digital literacy, and moderating content in Nepali languages.

The Nepal Telecommunications Authority (NTA) has directed all Internet Service Providers (ISPs) to lift the ban, citing Section 15 of the Telecommunications Act. TikTok has three months to meet the government’s conditions and will collaborate with local authorities to ensure compliance with the new regulations.

The ban was initially imposed in November 2023 due to concerns about social harmony and inappropriate content, leading to criticism regarding freedom of expression. The recent decision to lift the ban has been positively received by TikTok, which is committed to fostering creativity and free expression among Nepali users, reflecting a balance between regulation and digital innovation.

US DoJ takes Google to court over monopoly

Google is facing another antitrust battle in a Virginia court, where the US Justice Department has accused the tech giant of monopolising the online advertising industry. Prosecutors argue that Google controls the infrastructure that handles hundreds of thousands of ad sales each second, using its size and dominance to push out competitors and restrict customer choice.

The trial, which US District Judge Leonie Brinkema is hearing, focuses on claims that Google acquired rivals and manipulated market transactions to gain control over both advertisers and publishers. The government’s case highlights how Google allegedly stifled competition and locked customers into its products, tactics reminiscent of traditional monopolies.

Google’s defence, led by attorney Karen Dunn, refuted the accusations by arguing that the case is based on outdated market conditions. She noted that Google now faces significant competition from other major tech companies like Amazon and Comcast and that its tools have evolved to work alongside its rivals.

As the trial progresses, prosecutors push for Google to be forced to sell off essential parts of its ad business, including Google Ad Manager. The case is part of a broader effort by US authorities to curb the dominance of Big Tech, with other lawsuits targeting companies such as Apple, Meta, and Amazon.

Australia plans age limits for social media use

Australia is preparing to introduce age restrictions for social media use to protect children’s mental and physical health. Prime Minister Anthony Albanese announced the plan, emphasising that the government would conduct an age verification trial before finalising the laws, likely setting the minimum age between 14 and 16. Albanese stressed the importance of reducing children’s reliance on social media in favour of real-life activities, citing growing concerns about the harmful effects of digital platforms.

The proposed law would make Australia one of the first to implement such a restriction. However, past attempts by the EU have faced resistance over concerns about limiting minors’ online rights. Tech giants like Meta, the parent company of Facebook and Instagram, which currently have a self-imposed minimum age of 13, have responded cautiously, calling for empowerment and tools for young users rather than outright restrictions.

Why does this matter?

Australia‘s move comes amid a parliamentary inquiry into social media’s impact on society, where testimonies have highlighted its negative influence on teenagers’ mental health. However, critics warn that the law may backfire, potentially driving younger users into unregulated, hidden areas of the internet. Digital rights advocates and experts from institutions like the Queensland University of Technology have expressed concerns, arguing that exclusion from mainstream platforms could harm children’s digital engagement and safety.

Australia’s eSafety Commissioner has also noted that restriction-based approaches may limit access to critical support services for younger users. As the debate continues, social media industry groups urge the government to consult with experts to ensure the policy does not inadvertently expose children to greater risks online.

Telegram tightens content rules after criticism

Telegram founder Pavel Durov announced that the messaging platform will tighten its content moderation policies following criticism over its use for illegal activities. The decision comes after Durov was placed under formal investigation in France for crimes linked to fraud, money laundering, and sharing abusive content. In a message to his 12.2 million subscribers, Durov stressed that most users were law-abiding but acknowledged that a small percentage were tarnishing the platform’s reputation. He vowed to transform Telegram’s moderation practices from a source of criticism to one of praise.

While details on how Telegram will improve its moderation remain sparse, Durov revealed that some features frequently misused for illegal activity had already been removed. These include disabling media uploads on a standalone blogging tool and scrapping the People Nearby feature, which scammers had exploited. The platform will now focus on showcasing legitimate businesses instead. These changes follow Durov’s arrest and questioning in France, raising significant concerns within the tech industry over free speech, platform responsibility, and content policing.

Critics, including former Meta executive Katie Harbath, warned that improving moderation would not be simple. Harbath suggested that Durov, like other tech CEOs, may find himself in for a difficult task. Telegram also quietly updated its Frequently Asked Questions, removing language that previously claimed it did not monitor illegal content in private chats, signalling a potential shift in how it approaches privacy and illegal activity.

Durov also defended Telegram’s moderation efforts, stating that the platform removes millions of harmful posts and channels daily, dismissing claims that it is a haven for illegal content. He expressed surprise at the French investigation, noting that authorities could have contacted the company’s the EU representative or himself directly to address concerns.

UK regulator accuses Google of abusing ad market power

The UK’s antitrust regulator, the Competition and Markets Authority (CMA), has accused Google of abusing its dominant position in digital advertising, restricting competition in the sector. According to the CMA, Google’s practices, which allegedly favour its ad exchange platform, have hurt British publishers and advertisers, impacting their ability to generate revenue through digital ads. The regulator’s provisional findings suggest that Google has been using its influence in the advertising market’s buying and selling sides since 2015.

The CMA highlighted the potential harm these practices could cause businesses relying on online ads to fund their websites and apps, reaching millions across the UK. Juliette Enser, interim executive director of enforcement, stressed that this anti-competitive behaviour undermines free or lower-cost digital content. In response, Google disagreed with the CMA’s conclusions, arguing that its advertising tools support businesses of all sizes in a highly competitive industry.

The issue is part of a larger global scrutiny of Google’s advertising practices, with similar investigations underway by the US Department of Justice and the European Commission. In 2023, the EU regulators even suggested that Google might need to sell parts of its adtech business, though the company dismissed this idea as disproportionate. The CMA is now set to review Google’s response before deciding on possible fines or other legal actions to end the infringement.

Google faces new remedies in US DOJ antitrust case

The US Department of Justice plans to outline by December the steps Alphabet’s Google must take to restore competition after being found guilty of illegally monopolising the online search market. Prosecutors have not revealed specific remedies but indicated that their proposal would be comprehensive and consider Google’s plans to integrate AI into its search operations, including rebranding its AI product to Gemini.

Potential actions include requiring Google to divest certain business units, such as its Android operating system, or stopping billions in payments to ensure its search engine remains the default on devices and browsers. Google’s legal team argued that they need a detailed proposal from prosecutors to prepare a response, possibly involving information from AI rivals like Microsoft and OpenAI.

Google has said it plans to appeal the ruling, and US District Judge Amit Mehta suggested a possible hearing in the spring, with a final decision expected by next August.

Snapchat faces lawsuit for child exploitation claims

New Mexico has filed a lawsuit against Snap Inc, alleging that Snapchat’s design facilitates the sharing of child sexual exploitation material. Attorney General Raul Torrez stated that a months-long investigation found Snapchat to be a key platform for sextortion, where predators coerce minors into sending explicit content.

Snap said it is reviewing the complaint and will respond in court. The company has invested significant funds into trust and safety measures and continues to work with law enforcement and safety experts to combat such issues.

Snapchat is widely used by teens due to its disappearing message feature, which has been criticised for misleading users. According to Torrez, predators can permanently capture the content, creating a virtual collection of child sexual images that are shared indefinitely.

Investigators opened a decoy Snapchat account as part of the investigation, discovering 10,000 records of child sexual abuse material on the dark web. Snapchat was identified as a major source for such content in these sites. New Mexico also sued Meta last December for similar reasons.

Google’s new proposals under EU antitrust review

European Union regulators will gather feedback next week on Google’s latest proposals to comply with competition rules aimed at curbing the dominance of Big Tech. The process could determine whether formal charges will be brought against the company.

The European Commission initiated an investigation in March to examine whether Google unfairly favours its own vertical search services, including Google Shopping, Flights, and Hotels, over rivals. Competitors have raised concerns that Google has not fully complied with the EU’s Digital Markets Act (DMA), which seeks to level the playing field for smaller competitors.

In response, Google has offered a proposal that would display a separate box for competitors below its product listings in search results. It also suggested adding two adjacent boxes to show intermediaries alongside direct suppliers like airlines and hotels. Regulators will hold workshops in September to hear from stakeholders, though Google will not participate.

Failure to address the regulators’ concerns could result in formal charges and a potential fine of up to 10% of Google’s global annual turnover. Google stated that it will continue to engage with the European Commission and the industry in the coming months.