Apple Inc. (Nasdaq:AAPL) is getting hit hard by a ruling from the European Union in what may be retaliation for America being better in innovation and everything else (I kid, I kid). But some note and I quote from Dave Lutz of Jones Trading below.

Apple Inc. (AAPL)

The European Union’s antitrust regulator demanded that Ireland recoup roughly €13 billion ($14.5 billion) in unpaid taxes from Apple, a move that could intensify a feud between the EU and the U.S. over the bloc’s tax probes into American companies – The European Commission Tuesday said the tax arrangements Ireland offered Apple in 1991 and 2007 allowed the company to pay less than 1% or almost zero tax on its European profits for more than 10 years, between 2003 and 2014.Apple has already said it will appeal the decision.

Apple Inc. (AAPL) Quarterly Effective Corporate Tax Rate | FindTheCompany

Apple Inc. (AAPL) Quarterly Effective Corporate Tax Rate | FindTheCompany

Cynic in me thinks AAPL tax bill is a EU reaction to the USA breaking the VW scandal – The Apple case cuts to the heart of the power struggle between Brussels and Washington over who sets the standards – whether on tax, privacy, or finance – for global business – The US government has lobbied intensely against the move – both in private and then very much in public, accusing Brussels of everything from overstepping its jurisdiction to simply being jealous of the success of US tech groups. Early last year, the president claimed the commission was driven by protectionism. AAPL is the largest component in the QQQs and SPY.

The list of big American tech companies being investigated by Margrethe Vestager, the EU’s competition chief, for either antitrust violations or sweetheart tax deals already reads like a “who’s who” of Silicon Valley: Google, Amazon, Apple. Her proclivity for going after US companies, particularly in her tax investigations (American non-tech groups like McDonald’s and Starbucks have also been targeted), has already raised eyebrows in Washington, where Treasury officials and members of Congress have accused her of an anti-American bias.