European Commission says Apple's Irish tax deals 'constituted State aid'

The European Commission has said that two tax arrangements agreed between Ireland and the US computer giant Apple amount to illegal State aid.

The commission released a letter that the EU's Commissioner for Competition sent to the Government in June formally giving its reasons for opening an investigation into Ireland's arrangements with Apple.

The regulators said it is their "preliminary view" that deals entered into between Apple and the Irish tax authorities in 1991 and 2007 "constitute State aid" and therefore breached the 28-member EU's rules on a free internal market.