Apple, Google and Amazon announce price hikes in Europe to reflect ‘digital service tax’

Apple, Google and Amazon have announced that they will raise the price of services for UK corporate customers after the UK government announced a new “digital service tax”. Apple said the cost of app Store UK developers would rise by 2 per cent, while Amazon said it would “increase transfer fees, Amazon’s FBA fees, monthly FBA storage fees and multi-channel track fees by 2 per cent” in the UK to reflect the extra tax. “

Apple, Google and Amazon announce price hikes in Europe to reflect 'digital service tax'

Google will increase the cost of buying ads on Google Ads and YouTube by 2%.

Apple also said it would change the prices of some apps and in-app purchases in the App Store to reflect changes in taxes or exchange rates in different countries and regions. These include a reduction in the VAT rate from 19 per cent to 16 per cent in Germany (effective July 2020), an additional 3 per cent digital service tax in France (on top of the existing 20 per cent VAT) and a 3 per cent digital service tax in Italy (on the existing 22 per cent VAT basis).

The three companies said the price increase would take effect on September 1. Facebook has yet to announce a price increase.