Apple is increasing billings on its app store. The Cupertino-based giant revealed that “prices on the App Store will increase for all territories in the European Union as well as in Canada and Norway, decrease in Iceland, and change in Russia. These changes are being made to account for adjustments in value-added tax (VAT) rates and foreign exchange rates.”
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The move by Apple is a response to the pan-EU policy which requires the company to deduct VAT based on its rates at the customer’s location, rather than the company’s. Until now, the European policy had affected only the developers’ margins but with this move, consumers are about to fill the pinch.
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On the App Store, developers don’t have the option to pick their own price, instead they are limited to a series of tiers which are linked across nations. It is unclear whether developer’s pay will increase with the increase on apps.
Apple also revealed that it has now paid out a cumulative US$25-billion to App Store developers, a US$5-billion increase since July 2014. Apple also notes that $8 billion of its cumulative payout to iOS app makers has gone to U.S.-based developers.
According to Apple, the new pricing structure should come into effect within the next 36 hours.
