BRUSSELS—The European Union's antitrust regulator demanded that Ireland recoup roughly €13 billion ($14.5 billion) in unpaid taxes from Apple Inc., 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.

"The commission's investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years," said European antitrust commissioner Margrethe Vestager.

Both Apple and Ireland can appeal the decision in court.

Shares in Apple fell more than 2% in pre-market trading in Europe shortly after the decision was announced.

Write to Natalia Drozdiak at natalia.drozdiak@wsj.com and Sam Schechner at sam.schechner@wsj.com

(END) Dow Jones Newswires

August 30, 2016 06:55 ET (10:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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