Brexit Drives Up UK App Store Prices 25%

Globally, the typical smartphone user uses 30 apps every month.A weak exchange rate paired with the U.K.’s 20 percent Value-Added Tax rate brings app prices in the U.K.to the same level as in the USA, meaning that a $0.99 app here costs £0.99 overseas. It’s not the only company forced to make products more expensive, either, with Tesla responding by increasing the prices of its built-to-order Model S and Model X cars too. It is believed that the same price hikes will flood into the iTunes Store as well, which will mean higher prices in the United Kingdom for movies, books, and music. To mitigate the price jump, Apple is giving publishers to option to lower the price of their apps to new 49 pence and 79 pence tiers.According to App Annie, China was a major reason behind the increase in iOS downloads.The lawsuit says Apple only allows developers to sell iPhone apps through its App Store.The change means an app that previously cost 79p will now cost 99p.”Price tiers on the App Store are set internationally on the basis of several factors, including currency exchange rates, business practices, taxes, and the cost of doing business”, Apple explains in a statement to The Verge.At the time, U.S. District Judge Yvonne Gonzales wrote that the plaintiffs failed to “allege facts showing that each named plaintiff has personally suffered an injury-in-fact based on Apple’s alleged conduct”, but noted that their complaint could be amended and refiled.The clampdown on app stores came just after Apple removed the New York Times from its China app store, stating that it was in violation of local regulations.Users in India will experience a 14 percent service tax tacked on to their purchases, plus levies of 0.5 percent introduced by the government in December 2016.While the full effects of Brexit are unclear, they will soon take their toll on Apple enthusiasts.While the change also affects India and Turkey, the chief culprit of the 25% bump is believed to be Brexit, and the resulting devaluation of the pound.