Apple, Google, and Amazon respond to European tech taxes by raising prices

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Illustration by Alex Castro / The Verge

For many years, Europe has been unhappy with the tax habits of US tech giants. As regulators and politicians have often noted, these firms make vast amounts of money from European citizens but pay a pittance in tax. In the absence of an overhaul of the global tax system, a number of European nations have introduced new taxes aimed specifically at these companies. And the tech giants are responding by passing on the costs.

Over the last month, for example, Apple, Google, and Amazon have all announced price increases for UK enterprise customers specifically designed to offset a new “digital services tax” introduced by UK government. This increases tax on any revenue produced by “search engines, social media services and online...

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