The war between Twitter and Apple seems started. On November 28, Elon Musk took on the iPhone maker. Tangled, he criticizes the company for wanting to remove Twitter from its app store, for taxing each download with 30% or for not supporting freedom of expression. All while he directly questions Apple boss Tim Cook.
• What started the fire?
Since Elon Musk took over Twitter, advertisers have abandoned the platform. Last year, 90% of the platform’s revenue came from the sale of advertising space. But today, the divisive personality of his new boss and the many changes made to the social network are pushing brands to be very cautious.
Apple is also one of the companies that has stopped its payment communication on Twitter. Far from being the only one, however, Elon Musk specifically pointed it out in a series of posts.
• Is Apple threatening to remove Twitter from its app store?
During his invective, Elon Musk said, among other things, that Apple “also threatened to remove Twitter from its App Store.” Without the app store, the platform would not be available to all iPhone users. The billionaire claims the phone maker has provided no details to justify his threats.
However, Apple, like Google, is responsible for the security of its app store. This concept encompasses the contents to which the applications available in the App Store give access. Moderation is, therefore, one of the points specially examined by Apple when it integrates this or that platform into its store.
Except that with the arrival of Elon Musk at the helm of Twitter, a significant wave of layoffs and departures (more or less forced) hit the social network’s workforce. Compared to 7,500 in October, only 2,500 employees survived the takeover of the company. With two-thirds fewer employees, moderation teams have been hit hard.
Therefore, it is this point that could tip the balance in favor of a ban on Twitter, not only in the App Store, but also in the Google Play Store. Especially since since he took power, Elon Musk has rehabilitated personalities banned from the social network, with former President Donald Trump at the helm. Most recently, a general amnesty was enacted following a proposed community vote on the new leader.
• Are there other reasons for Elon Musk’s positions?
The app store commission is also in Elon Musk’s sights. For every purchase made within an app from the App Store or Google Play Store, the two tech giants receive compensation. This type of tax amounts to 30% for Apple (15% for a subscription of more than one year) and 15% for Google.
If these commissions are not secret, their legitimacy is often questioned. And Elon Musk intends to lead the revolt. Because for the new owner of Twitter, the financial survival of his company depends on it.
Since his takeover of Twitter, the billionaire has envisioned a new economic model. While advertising has always made up the bulk of the platform’s revenue, Elon Musk wants to shift towards subscriptions. This strategy must allow the company to achieve profitability, in particular by offering a paid certification.
The only problem, the use of Twitter from a phone is very important. Thus, many subscriptions would be taken from a phone and fall under the taxes imposed by Apple and Google. It would be a deficit for Elon Musk.
• Can Twitter escape this tax?
To prevent Apple and Google from profiting from their subscription sales, Twitter may encourage its users to subscribe from a computer. Going through the website of the social network, taxes could not apply. But this option faces a practical aspect since the use of users has been in force for many years.
Therefore, the billionaire is considering a more “Muskian” solution. It should be remembered that in 2016, Elon Musk had already had enough traffic jams to go to work. To solve this problem, he founded a company to tunnel under Los Angeles for faster travel. All financed by the sale of flamethrowers in 2018, or “burnt hair” perfumes in 2022.
Thus, to avoid paying a tax related to the use of iPhone or Android phones, the entrepreneur simply considers producing his own phone.
But this hypothesis faces many challenges. It would be necessary to create an operating system, a dedicated application interface and a coherent ecosystem. But the billionaire no longer seems to be an obstacle.
• Could this conflict end up in court?
Apple has already experienced frontal attacks recently. In 2020, Epic Games launched against the American giant. The issue of tension was already Apple’s 30% commission. Games publisher Fortnite blamed Apple for taking part of its revenue. In the face of criticism, the application had simply been removed from the App Store.
Since then, a trial between Apple and Epic Games began in May 2021. But since then, the Fortnite game has not been found on the iPhone and iPad app store. As part of his series of tweets against Apple, Elon Musk reposted the clip made by Epic Games to denounce the app store tax. It remains to be seen if the Twitter boss wants to go the same way as Epic Games.
Source: BFM TV
