Apple (NASDAQ:AAPL) faces a setback in its ongoing tax dispute with the European Union as a legal adviser to the EU’s top court suggests that the lower court’s decision in favor of the tech giant should be overturned. 

Advocate General Giovanni Pitruzzella recommended setting aside the ruling that exempted Apple from repaying 13 billion euros ($13.9 billion) in back taxes to Ireland. The case, initiated in 2016, has been a point of contention, with Apple’s CEO Tim Cook previously dismissing it as “total political crap.”

In 2020, the European Union’s General Court contradicted the European Commission’s claims that Apple had engaged in an illegal tax deal with Irish authorities, allowing the company to benefit from exceptionally low tax rates. Pitruzzella advised the European Court of Justice to overturn the judgment and refer the case back to the General Court for a fresh decision on its merits, citing legal errors in the initial ruling.

While the European Court of Justice’s opinions are not legally binding, they often influence the court’s final decision. A definitive ruling is anticipated next year. Apple expressed gratitude to the court for its consideration and maintained its stance that it received no selective advantage or State aid in the matter. 

The European Commission, responsible for the initial accusations, declined to comment. The broader context of the EU’s tech crackdown includes antitrust investigations into Apple’s payment platform and App Store, along with increased scrutiny under new digital rules aimed at fostering fair competition.

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