Win for Apple as EU Backs Down on Digital Services Tax

The European Commission appears to have reversed its plans to impose a significant digital tax on large technology companies, including Apple.

european commission
The change was confirmed in a draft document circulated within the European Commission late last week that was obtained by Politico. The document outlines potential revenue sources for the EU's next seven-year budget, covering the period beginning in 2028.

Notably absent from this list is the widely discussed digital services tax, which had been under consideration as recently as May. The tax was framed as a tool to ensure that large digital companies contribute fairly to the European economy.

Apple has faced increasing regulatory scrutiny in Europe and was among the primary targets of the now-abandoned proposal. The digital levy would have imposed additional taxes specifically on digital companies generating significant revenue from European users without being physically based in EU member states.

Instead of the digital services tax, the Commission now proposes three new levies: an EU-wide excise tax on tobacco products, a tax on discarded electrical and electronic equipment, and a corporate levy on large companies with annual EU turnover exceeding €50 million, such as Apple. The proposals will require unanimous approval from all 27 EU member states.

The timing of the change is widely understood to be linked to ongoing negotiations over a new transatlantic trade agreement between the EU and United States. According to Politico, the Commission's decision to withdraw the digital levy is seen as an attempt to avoid derailing trade negotiations with the United States and secure more favorable terms in a prospective agreement.

The finalized proposal for the EU's 2028–2035 budget is scheduled to be published on Wednesday, July 16. While the digital services tax remains off the table for now, the outcome of the upcoming trade talks with the United States and the ongoing DMA enforcement actions will continue to shape the regulatory environment for Apple in the European Union.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

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Top Rated Comments

Six0Four Avatar
2 weeks ago
Thank God the multi-trillion dollar company is safe ?‍?
Score: 35 Votes (Like | Disagree)
macfacts Avatar
2 weeks ago

Why do you think the EU gov is entitled to Apple’s hard earned money?
When you do business in a country, you normally pay taxes, but some companies are using a loophole (doing business "on the Internet") to avoid paying any taxes.
Score: 29 Votes (Like | Disagree)
Shirasaki Avatar
2 weeks ago

Why do you think the EU gov is entitled to Apple’s hard earned money?
Why do you think Apple is entitled to operate in EU however they like with immunity? Or apply US laws on EU land?
Score: 21 Votes (Like | Disagree)
miniyou64 Avatar
2 weeks ago

Noooo. Apple is already paying too little taxes!
Why do you think the EU gov is entitled to Apple’s hard earned money?
Score: 17 Votes (Like | Disagree)
con2apple Avatar
2 weeks ago

wow. That’s a huge reversal.

This announcement came relatively quickly after Apple started their appeal:

https://www.macrumors.com/2025/07/07/apple-appeals-eu-500m-euro-fine/
The DMA has nothing to do with the planned Digital tax.
Score: 14 Votes (Like | Disagree)
555gallardo Avatar
2 weeks ago
As an European, I’m glad they backed down from the tax. Otherwise we would have 2GB Free iCloud storage tier instead of current 5GB.
Score: 14 Votes (Like | Disagree)