Ireland Loses Apple Billions, But Wins Tax Vindication for Now

For Ireland, a ruling that it didn’t illegally help Apple Inc. is vindication, of sorts.

On Wednesday, a European Union court sided with the iPhone maker and the Irish government, saying the European Commission failed to show the nation’s tax arrangements amounted to state aid. In the process, it struck down a demand that Apple must pay a record 13 billion-euro ($14.9 billion) tax bill, surprising Dublin officials, who were braced for a loss.

The government elected to fight the 2016 decision alongside Apple, a move that puzzled voters who couldn’t fathom why the country wouldn’t accept a windfall from ...