Apple, Google, Amazon to raise prices after European 'digital services tax'

The 3 tech behemoths will raise their prices 2% to reflect the new tax

Apple, Google and Amazon announced they will be raising prices for enterprise customers in the U.K. after the government announced a new "digital services tax."

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U.K. developers for the App Store will see their costs rise by 2%, while Amazon said it would increase "referral fees, Fulfilment by Amazon (FBA) fees, monthly FBA storage fees and Multichannel Fulfilment (MCF) fees by 2% in the UK to reflect this additional cost."

Google is increasing the fees for ads purchased on Google Ads, as well as YouTube, by 2%.

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Apple also said it would be changing some of the prices of apps and in-app purchases in the App Store to reflect changes in taxes or foreign exchange rates in a number of different countries. The changes are as follows:

Chile: New value-added tax of 19% Mexico: New value-added tax of 16% Saudi Arabia: Increase in value-added tax from 5% to 15% Turkey: New digital services tax of 7.5% (in addition to the existing value-added tax of 18%)

Germany: Reduced value-added tax rate from 19% to 16% (effective July 2020) France: New digital services tax of 3% (in addition to the existing value-added tax of 20%) Italy: New digital services tax of 3% (in addition to the existing value-added tax of 22%)

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The price increases are effective Sept. 1 and will not be applied retroactively, all three companies added.

TickerSecurityLastChangeChange %
AAPLAPPLE INC.116.40+0.59+0.51%
GOOGLALPHABET INC.1,486.31+20.71+1.41%
AMZNAMAZON.COM INC.3,204.89+56.16+1.78%

Facebook has not yet announced an increase in prices. FOX Business has reached out to the company with a request for comment.

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Tech publication The Verge was the first to report the price increase.

Shares of the three giants were mixed in Thursday trading, with Apple falling 3.1% to 129.96. Amazon and Alphabet (the parent company of Google) were higher, gaining 0.36% and 1% to trade at $3,511.77 and $1,671.24, respectively.

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