Elon Musk slammed Apple in a series of tweets o Twitter on Monday over its 30% App Store fees, providing Spotify and Epic Games with a powerful ally in their battle against the tech giant.
Elon Musk chastised Apple for charging software developers a fee for in-app purchases and posted a meme implying he was willing to “go to war” rather than pay the levy.
Musk also claimed that Apple had threatened to remove Twitter from its app store, though he did not elaborate.
Spotify has filed antitrust complaints against Apple in Europe, and Epic Games planned to sue Apple in the United States in 2020.
Musk, who purchased Twitter last month, has announced plans to charge users $8 per month to become verified on the social media platform to increase profitability and avoid bankruptcy. A 30% reduction would be a significant blow to those plans.
After Spotify filed an antitrust case against Apple in 2019, the European Commission has been investigating whether Apple’s rules for app developers violate its rules.
If found guilty of violating EU antitrust rules, Apple faces a fine of up to 10% of its global revenue.
Apple is “playing a dangerous game,” according to Luke Suddards, an analyst at investment insights firm Finimize, by threatening to remove Twitter from its App Store.
“If Twitter is suspended, another lawsuit could be filed. Elon Musk used the courts effectively during his Twitter acquisition, and it would not be surprising if he used the same strategy now.”
Apple vs. Epic Games
Epic Games asked a three-judge U.S. federal appeals panel earlier this month to overturn portions of a lower court antitrust ruling that favored Apple and its App Store payment business.
Apple previously stated that the commissions it receives help it fund app reviews to ensure consumers are not exposed to fraudulent, pornographic, or privacy-invading apps.
“Apple continues to disadvantage competitors, with significant consequences for consumers, app developers, and, most recently, authors and publishers. Nothing will change unless policymakers take action. “Last month, Spotify CEO Daniel Ek posted on Twitter.
Musk, who was in the process of purchasing Twitter at the time, responded to Ek’s post with “concerning.”
However, some analysts are concerned that going to war with Apple will drive more users away from Twitter.
“While Musk seeks to rekindle the ongoing feud between Apple and developers, all of this negativity will drive Twitter users away,” said Paolo Pescatore, an analyst with PP Foresight.
“People are not going to abandon their iPhones… They are used to signing up for various social services but only use one phone at a time, “He stated.
Apple threat to yank Twitter from App Store
In a series of tweets on Monday, Elon Musk accused Apple of threatening to block Twitter Inc from its app store without explaining why. He also claimed that the iPhone maker had stopped advertising on social media.
The billionaire CEO of Twitter and Tesla claimed that Apple was putting pressure on Twitter over content moderation requirements.
Apple has not confirmed the action, but it would not be unusual given that the company has routinely enforced its rules and previously removed apps such as Gab and Parler.
Apple restored Parler, popular among US conservatives, in 2021 after the app updated its content and moderation practices, the companies said at the time.
“Apple has largely discontinued advertising on Twitter. Do Americans despise free speech? “Musk, who purchased Twitter for $44 billion last month, stated in a tweet.
In a subsequent tweet, he tagged Apple CEO Tim Cook’s Twitter account, asking, “what’s going on here?”
Apple did not respond immediately to requests for comment.
“It wasn’t clear to me how far up the Apple food chain that idea went internally,” Randal Picker, a law professor at the University of Chicago, said.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/MTILGWEO7ZKB3K7TIYT3LG63DI.jpg)
Apple was the top advertiser on Twitter.
According to ad measurement firm Pathmatics, the world’s most valuable company spent an estimated $131,600 on Twitter ads between Nov. 10 and Nov. 16, down from $220,800 between Oct. 16 and Oct. 22, the week before Musk closed the Twitter deal.
According to an internal Twitter document, Apple was the top advertiser on Twitter in the first quarter of 2022, spending $48 million and accounting for more than 4% of total revenue for the period.
Twitter did not immediately respond to a request for comment on the report from Reuters.
The up to 30% fee Apple charges software developers for in-app purchases was among Musk’s list of grievances, with Musk posting a meme suggesting he was willing to “go to war” with Apple rather than pay the commission.
The fee has drawn criticism and lawsuits from companies such as Epic Games, the creators of ‘Fortnite,’ as well as the attention of regulators worldwide.
The commission may consider Musk’s efforts to increase subscription revenue at Twitter, partly to compensate for the exodus of advertisers due to content moderation concerns.
Since the acquisition, companies ranging from General Mills Inc (GIS.N) to luxury automaker Audi of America have stopped or paused advertising on Twitter, and Musk stated earlier this month that the company had seen a “massive” drop in revenue.
Ad sales generate roughly 90% of Twitter’s revenue.
The self-described free speech absolutist, whose company has reinstated several Twitter accounts, including that of former US President Donald Trump, in recent days, has blamed activist groups for putting pressure on advertisers.
According to Ben Bajarin, the head of consumer technologies at research firm Creative Strategies, Musk may be reading too much into a routine process Apple uses for app review.
“App review from Apple is not perfect by any means, and it is a consistently frustrating process for developers,” he said. “However, from what I hear, it is a two-way conversation.”
Elon Musk to Grants Amnesty to Suspended Accounts
https://www.vornews.com/tech/twitter-to-reinstate-accounts/
