Apps, e-books, and album downloads are about to get more expensive in Europe

Sweeping changes to European Union tax law could see the price of apps, e-books, and MP3s raised throughout Europe by an average of 6.5 percent. The new legislation -- known as Directive 2008/8/EC -- comes into force on January 1st and is intended to shut down a tax loophole being used by big firms to charge less VAT (value added tax) on digital goods. Although not many individuals will be happy about the prospect of paying more for their games and movies, proponents of the bill say it will level the playing field between small and large companies and create a fairer market. Critics reply that the compliance costs will ruin small businesses. Although there's no consensus about what will happen, it's broadly expected that it's the customers that will have to absorb the new VAT rates.

[Dec 23]