Elon Musk Urges Apple to Reduce App Store Fees for Content Creators

Elon Musk, the CEO of Twitter or “X,” stated today that he plans to speak with Tim Cook, the CEO of Apple, about lowering the fees charged by the App Store to content creators who make money from subscriptions on Twitter or “X” social network.

Musk’s Plan to Reduce Apple’s Share

Musk stated his intention to approach Apple with his plan to collect 30 percent of the creator fee that Twitter retains rather than 30 percent of the total charge a creator gets through Twitter in a post about support for creators. This would result in Apple receiving a significantly smaller portion of the money that Twitter pays its artists.

Twitter’s Fee Structure

Musk has stated that Twitter does not want to collect fees from creators whose annual earnings are less than $100,000. After a creator’s revenues have reached $100,000, Twitter will begin taking a 10 percent cut of those earnings; however, the first year will be free for all creators. If Twitter and Apple agreed, Twitter would have to give Apple 30 percent of the 10 percent cut it receives from creators whose earnings are greater than $100,000.

Apple’s Revenue Share Policy

Fees associated with in-app purchases are collected by Apple whenever a subscription is purchased via the Twitter app on an iOS device. Apple receives a revenue share of thirty percent for the first year of a customer’s subscription and fifteen percent for each year thereafter. Apple gets the same percentage of revenue from each and every digital transaction made through the App Store, and the Cupertino-based business is not known for breaking its policies very often.

Challenges with the Existing System

Musk’s request would not be feasible with the existing configuration of in-app purchases because Apple takes its cut of the money paid to creators by subscribers rather than directly paying the creators.

Facebook’s Complaint and Alternative Strategy

Facebook has filed a complaint with Apple regarding the cost it takes through the subscription option available on Facebook for authors; however, Apple has not amended its regulations. Instead, Facebook encourages users to support creators by subscribing on the web rather than on a mobile device. This is a strategy that Musk might employ to minimize the fees that Apple takes, as it is a method that Facebook uses.

Musk’s Criticism of Apple’s Fees

Musk has in the past voiced his disapproval of the fees that Apple charges for using its App Store, stating that the cut that Apple takes is “definitely not ok” and comparing it to a “30% tax on the internet.”