Apple received further backlash from SpaceX and Tesla CEO Elon Musk. Yesterday, May 4, Musk posted another tweet targeting the tech company regarding its pricing.
Based on his tweets, Apple’s App Store is being compared to putting a higher percentage tax rate on its system, which he says is not acceptable. Elon Musk’s posted tweet reads: “Apple store is like having a 30% internet tax. Definitely not OK.”
The Apple store is like having a 30% Internet tax. Definitely disagree.
— Elon Musk (@elonmusk) May 3, 2022
Additionally, Musk also complained that it was higher, saying “literally 10 times higher than it should be.”
Literally 10 times higher than it should be
— Elon Musk (@elonmusk) May 3, 2022
Elon Musk’s take on the Apple App Store
Apple has taken another hit from the world’s richest man, Elon Musk. In his most recent tweet, Musk once again takes aim at skyrocketing App Store fees, all of which are billed to developers.
As MacRumors reports, his comparison this time around, when using Apple’s App Store, is like imposing a 30% tax on the internet. Apple has an App Store policy that takes a 30% discount from software developers who generate more than $1 million in revenue through their App Store on an annual basis.
30% is a significant revenue stream that does not benefit the majority of software developers, especially small software companies. However, during the pandemic, the tech giant slashed its fees for smaller developers who generate less revenue through the Small Business Developer Program to 15%, a significant reduction.
The company charges a 15% commission rate on paid software purchases, in-app purchases, and subscription fees, with the lower commission rate benefiting the vast majority of App Store developers.
Apple’s lawsuit against Epic Games
Apparently, this isn’t the first time Elon Musk has indicated that he thinks App Store fees are divisive. In July 2021, Musk tweeted in which he described it as a “de facto global tax on the internet”.
Apple’s App Store fees are a de facto global internet tax. Epic is right.
— Elon Musk (@elonmusk) July 30, 2021
As 9TO5MAC reports, at the time Musk supported Epic Games’ discussion of whether Apple should open its App Store to allow customers to choose between other stores or if it should open its App Store. to allow consumers to pay for digital goods in an alternative way.
Last year, Epic Games filed a high-profile lawsuit against the tech giant over the management of the App Store. Apple doesn’t allow apps or alternative methods of accepting payment for digital goods, requiring developers to pay the company a 15 or 30 percent commission on sales of their digital goods.
Epic Games is also widely recognized as the creator and owner of the Fortnite video game. During the lawsuit, Epic Games argued that Apple’s intransigence constituted a monopoly, and the court ordered it to give up some of its power over the iPhone to a more manageable level.
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Walled garden of apple trees
Elon Musk has already repeatedly expressed his dissatisfaction with the Apple App Store. In another example from last year, Musk slammed the tech giant for building a “walled garden” and said Tesla would never engage in such behavior.
When discussing Apple’s iOS platform, the term “walled garden” is frequently used to describe it because it is a closed platform over which it has full control. The company limits the software that can be installed on the iPhone and forces companies to use its App Store to do business.
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