Apple sidesteps paying taxes, but may not be able to evade anti-trust accusations in Europe

Apple sidesteps paying taxes, but may not be able to evade anti-trust accusations in Europe

Apple may be playing favorites with itself

Back in May, it was reported the European commission was looking into alleged anti-competitive practices Apple may have engaged in to push the iPhone.

At the time, a series of questionnaires were sent to retailers asking whether or not Apple convinced them to participate in such behavior, and included questions about purchase agreements.

Now, a little over a month later, French anti-trust group Autorite de la Concurrence is digging deeper into Apple's potentially harmful practices.

According to French paper Les Echos, the authorities searched numerous Apple offices, wholesalers, and retailers in an effort to uncover the truth behind possible anti-trust violations.

Nappletism

The whole issue was raised when EBizcuss, an Apple retailer in France, went bankrupt last year, prompting the company to file a suit against Apple with claims of "abuse of economic dependence" and "unfair competition."

EBizcuss' issue with the Cupertino company stemmed from a perceived favoritism for its own proprietary Apple stores, which left secondary retailers allegedly without product or scrambling to offer competitive pricing.

Whether or not the French authorities will find any conclusive evidence Apple's own stores were the first to get products remains to be seen, but the accusations are clearly being taken very seriously.

As if Apple wasn't drawing enough unwanted attention over the anti-trust issue, the iPhone maker is also now drawing the ire of the U.K.'s tax collectors, as it somehow managed to avoid paying any taxes last year whatsoever.

iLoopholes

Despite earning £68 million (US$103.6, AU$112.1) during the last fiscal year, the Financial Times reported Apple paid a grand total of zero in taxes in the U.K.

Just for some comparison, Apple paid out £11.4 million (US$17.3, AU$18.8) in taxes for the 2011 fiscal year.

In order to avoid dropping so much wasted money on taxation, Apple reportedly granted millions in stock awards to its employees, all of which was 100 percent tax deductible.

Apple is already under scrutiny for its practice of funneling 80 percent of its international income into an Ireland-based subsidiary, where the tax rate is a mere .05 percent.

While not illegal by any stretch, the lengths to which major corporations like Apple will go to save a few million a year is quite impressive.

That said, it likely won't earn any favors should more of these anti-competitive complaints come to light, or should any of the accusations be found to be true.


Source : techradar[dot]com

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