Have UK Apple users seen the end of 69p app downloads?
Britain’s Chancellor of the Exchequer George Osborne has closed a tax loophole, which may result in iTunes and App Store prices in the UK rising by as much as 20% from 2015. The loophole meant that international companies including Apple were able to sell digital content in Britain through Luxemburg, where tax is as low as 3% — compared to the 20% it is charged at in the UK.
While around £300 million is expected to be saved from the move, it is bad news for individual users, who will likely see the minimum price of apps rise again — as they did in 2011 when they increased from £0.59 to £0.69.
The change is set to come into effect from Jan. 1, 2015. Apple has yet to officially respond to the news.
Source: The Guardian
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
