Apple has hiked up the price of apps on the App Store in an effort to tackle new tax laws across Canada and Europe.
Games that previously cost 69p, the cheapest price available, will now cost 79p. Some higher priced apps have also seen an increase in price, such as The Banner Saga, which previously cost £6.99 but has now been priced at £7.99 on the App Store.
According to Wired, developers were only informed of the price hike two days before it went into effect. The price increase has gone into effect across Europe and Canada.
The changes were sparked by new tax laws, with Europe closing a loophole on how large companies claim for VAT. Previously, countries such as Luxembourg allowed companies to charge a minimum VAT rate of three per cent up to a maximum of 15 percent, wherever sales took place.
From January 1st however, this loophole has been closed completely, and VAT is now charged at the rate of the country the sale has been made in. In the UK’s case, this is 20 per cent.
According Canadian newspaper The Star, Apple has also blamed foreign exchange rates as the reason for price hikes in Canada.