Apple raises minimum Apps Store prices in Europe

Apple has raised the price for apps on the Apps Store, following tax and foreign exchange rate changes.

The minimum price for the apps on iOS is now £0.79, up from £0.69, a 15 per cent increase. The prices are also now 20 per cent more expensive than in the U.S., where prices remain at $0.99.

Oddly enough, £1.49 apps still remain at that price, but £1.99 has seen another 15 percent increase to £2.29.

Apple has confirmed "Prices on the App Store are changing to account for adjustments in value-added tax (VAT) rates and foreign exchange rates.” The European Union recently announced new legislation, forcing online providers to charge VAT based on customer's location, rather than where Apple's European HQ is based in Luxembourg, a favorite for big U.S. corporations due to its low tax rates.

Outside the E.U., Norway and Canada also received the price increases on the Apps Store. Iceland was the only country to receive lower priced apps, while in Russia some apps are lower and some higher.

This is the first change in Apps Store prices since 2011, when Apple changed the price from £0.10 to £0.69. Apple recently updated prices in China, removing the $0.99 barrier to $0.16 (1 CNY). Apple appears to be changes prices depending on location, rather than having one standard for all regions.

The update comes after Apple announced a 50 per cent increase in app sales on iPhone and iPad, surpassing $15 billion (£9.92 billion) in sales in just one year, and potentially over $40 billion (£26 billion) sales overall since the Apps Store first launched.

Apple has a unique advantage over Android in places like China and India, since it has full control over where users buy their apps from, unlike Google who cannot seem to get its own store anywhere in China.

This may have played a big part on the huge rise of app sales in 2014, and shows promise for 2015.