Elon Musk Calls for Apple to Reconsider “Apple Tax” Policy

Elon Musk has once again brought up the issue of the “Apple tax.” Recently, the billionaire expressed his intention to discuss the matter with Apple CEO, Tim Cook. The main focus of their conversation would be to explore the possibility of adjusting the current 30% commission that Apple charges on in-app purchases, which Musk finds excessive.

Currently, Apple applies a 30% cut on all in-app transactions made on iOS, including subscriptions sold by creators through platforms like Twitter. Musk proposes that Apple should only take a 30% commission on the portion of the payout retained by Twitter, rather than the entire transaction amount.

Musk also disclosed Twitter’s updated approach to commission cuts for creators. Instead of a 10% cut on subscription revenue after 12 months, the new policy entails Twitter only applying a 10% cut once payouts surpass $100,000. This means that during the first 12 months, Twitter will not deduct any percentage from creators’ earnings.

In the past, Musk has likened Apple’s fees to a “hidden 30% tax on the Internet” and even postponed the launch of Twitter Blue on iOS to avoid these charges. He had also claimed that Apple threatened to withhold Twitter from the App Store, but later clarified that it appeared to be a misunderstanding after meeting with Cook at Apple’s headquarters.

Now the question remains whether Apple will make any policy adjustments in response to Musk’s concerns. Despite facing challenges from entities like Epic Games and Fortnite, Apple has granted exceptions to certain apps like Netflix, Spotify, and Kindle, allowing them to link to external websites for user account creation. However, even these exceptions were made due to legal pressures from developers and regulatory investigations in Japan.