# Apple Unveils Adjustments to App Store Pricing and Developer Earnings
In a major announcement for both developers and users, Apple has revealed planned alterations to App Store pricing and developer earnings. These modifications, which encompass new tax regulations and subscription rules, will begin rolling out in various regions, starting with Brazil.
## Brazil: New Tax Impacts Foreign Developers
As of May 16, 2023, Apple will adjust developer earnings in Brazil due to the implementation of a new tax referred to as CIDE (Economic Domain Intervention Contributions). This tax will apply a 10% fee on developers located outside of Brazil, which will be deducted from their revenue generated from paid apps and in-app purchases (IAP).
For developers who have not designated Brazil as their primary storefront in Apple’s App Store Connect, prices will be automatically updated to account for this new tax effective June 2, 2023. This change aims to align pricing with local economic contexts.
Moreover, similar pricing modifications will take place in Kazakhstan, where local economic factors have warranted revisions. However, developers who have designated Brazil or Kazakhstan as their main storefront will not experience any pricing changes. It is crucial to mention that these updates will not impact auto-renewable subscriptions or areas where developers manually control their prices, instead of depending on Apple’s automated pricing system.
## Europe: Consent Required for Subscription Price Increases
In an effort to boost consumer protection, Apple will establish a new protocol concerning auto-renewable subscription price hikes in Austria, Germany, and Poland beginning August 4, 2023. Under this protocol, all subscribers in these nations will be required to provide explicit consent for any price increase. If a subscriber chooses not to opt-in, their subscription will automatically end at the conclusion of the current billing cycle.
To keep users informed about the updates, Apple will alert subscribers weekly until they take action or until the subscription concludes. It’s noteworthy that any price increases for subscriptions planned prior to August 4 will still follow the existing notification policies, even if the subscription renews post that date.
## Conclusion
These updates signify Apple’s continual commitment to adjust to local economic conditions and improve the user experience on the App Store. Developers, especially those operating on an international scale, will need to stay updated on these changes to effectively manage their pricing strategies. As Apple progresses with its policies, both developers and consumers will have to navigate these adjustments to ensure compliance and sustain a seamless experience within the App Store ecosystem.
