• Elon Musk urges changes to Apple’s App Store policies, proposing a portion-based commission.

• Apple faces growing scrutiny from Epic Games, Spotify, and regulators.

Elon Musk is once again advocating for modifications to Apple’s App Store policies. He expressed his intention to talk with Apple’s CEO, Tim Cook, regarding adjusting the 30% commission Apple charges for in-app purchases.

In a recent tweet or post, Elon Musk highlighted Twitter’s current feature, which enables iOS app users to subscribe to other users’ accounts. However, these subscriptions are subject to Apple’s in-app purchase system, leading to Apple receiving a 30% share of the generated revenue, as outlined by the App Store guidelines.

Conversely, Twitter adopted a different approach by refraining from taking any revenue from these subscriptions during the initial 12-month period. After the first year, Twitter began to claim 10% of the subscription revenue.

With Musk at the helm, Twitter implemented a new subscription revenue share model. According to this model, Twitter will not claim any portion of the subscription revenue until a user’s total earnings reach $100,000. After surpassing this threshold, Twitter will take 10% of the subscription revenue but will continue to refrain from taking any revenue during the initial 12 months of the subscription.

Musk suggests that Apple should only receive a portion of the revenue creators pay to Twitter rather than the entire 30% of subscription fees.

Uncertain Outcome: Will Apple Respond to Musk’s Appeal?

Following Musk’s tweet, numerous X users rallied behind the idea of reforming the App Store. Some argued that Apple’s current 30% commission is excessive and that the company should reduce its share, particularly for subscription-based services.

Recognizing the significance of supporting creators, Musk encouraged those who could subscribe to numerous creators on the platform who pique their interest. He emphasized the challenging circumstances many creators face worldwide and asserted that their content deserves recognition.

Whether Musk’s appeal will yield results remains uncertain, given Tim Cook’s past resistance to altering Apple’s fees and policies despite criticism from various developers. As of the present time, neither Apple nor X has commented on Musk’s request.

This isn’t the first instance of Musk publicly criticizing Apple’s App Store policies. He previously expressed dissatisfaction with the “secret 30% tax” imposed on in-app purchases, leading him to delay the launch of Twitter Blue to avoid these fees. Musk also accused Apple of threatening to remove Twitter from the App Store but later clarified that it was a misunderstanding following a private meeting with Cook.

Despite the uncertainties surrounding Musk’s request, both Musk and X stand to benefit significantly from an increase in paying subscribers. This is likely the primary motivation behind Musk’s renewed focus. X has experienced a decline of more than 50% in ad revenue, indicating the need for alternative income streams. 

X could lessen its reliance on ad revenue by attracting more subscribers, particularly through creators and Twitter Blue. However, securing tens of millions, if not more, subscribers will be crucial to make up for the revenue deficit.

Apple’s App Store Under Growing Scrutiny

Musk’s recent appeal for changes in App Store commission rules comes amid increasing scrutiny of Apple’s fees and policies. Companies like Epic Games and Spotify have already challenged Apple’s dominance in-app distribution, and regulatory bodies in Japan and the UK have urged Apple to ease its restrictions.

While Apple has made minor concessions, such as allowing certain apps to link to external payment sites, many experts believe more significant changes are necessary.