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Apple is based in Luxembourg for tax and VAT purposes with regards to sales in the EU, so an additional cost is passed on to developers. This puts their cut closer to 60% in the EU, rather than the 70% Apple pays developers elsewhere. But that isn’t anything new. There does, however, appear to be a slight increase in the cut Apple takes due to taxes which puts their cut at nearly exactly 59-60%.
via TNW
€0.89 is including 15% Luxembourg VAT. When you remove the VAT (€0.89/1.15), it becomes €0.774, which according to XE.com is US$1.00127, which is about 1¢ more than the US App Store price of 99¢. It seems Apple was just bringing the price brackets it in line with VAT and current exchange rates to be about equal with US prices. They did this a while back in the UK.
via MacRumors