The relationship between the EU and several American tech giants, such as Apple, is strained, and newly sworn-in President Trump is addressing the situation.
EU rulings against Apple deemed a ‘form of taxation’ by US President
During his virtual appearance at the World Economic Forum in Davos, President Trump made several remarks critical of the EU.
According to Julia Shapero from The Hill:
President Trump expressed his discontent with the European Union (EU) on Wednesday for imposing substantial fines on major tech companies, referring to it as a “form of taxation” against American businesses.
“They won $15 or $16 billion from Apple. They’ve extracted billions from Google. I believe they are also pursuing Facebook for large amounts.”
“These are American companies,” he emphasized. “Whether you like them or not, they are American companies that should not be subjected to this. In my view, this is indeed a form of taxation. We have significant grievances with the EU.”
The payment associated with Apple refers to a prolonged legal dispute over Irish taxes, which has recently reached a conclusion. The EU determined that Apple’s tax arrangements with Ireland were unlawful and mandated that the company pay considerable back taxes.
In defense of American tech companies, Trump also addressed the EU’s broader economic strategies.
“The EU treats us extremely unfairly, quite poorly… We face hundreds of billions of dollars in deficits with the EU. This situation is not acceptable to anyone, and we will take action.”
DMN’s Perspective
These statements, made shortly into his presidency, suggest that Apple’s dealings with the EU may become increasingly complex.
It will be fascinating to observe how Trump’s second term influences the dynamics for Apple and other American tech companies facing EU oversight, touching not only on financial issues but also on pressing matters such as App Store regulations.
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