Apple has received another backlash from SpaceX and Tesla CEO Elon Musk. Yesterday, May 4, Musk posted another tweet targeting the tech company regarding their pricing.
Based on his tweets, Apple's App Store is being compared to implementing a higher percentage tax rate on its system, which he believes is not okay. The Elon Musk tweet published reads, "Apple's store is like having a 30% tax on the Internet. Definitely not OK. "
Apple’s store is like having a 30% tax on the Internet. Definitely not ok.
— Elon Musk (@elonmusk) May 3, 2022
Additionally, Musk additionally complained about it being higher, stating "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 current richest man, Elon Musk. In his most recent tweet, Musk is once again taking aim at the company's skyrocketing App Store fees, which are all charged to developers.
As reported by MacRumors, his comparison this time, when using the Apple App Store, is like imposing a 30% tax on the internet. Apple has an App Store policy that takes a 30% cut from software developers who generate over $1 million in revenue through their App Store on a yearly basis.
30% is a significant revenue stream that does not benefit the majority of software developers, particularly small software businesses. However, during the pandemic, the tech giant has reduced its fees for small 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 developers on the App Store.
Apple's Lawsuit with Epic Games
Apparently, this isn't the first time Elon Musk has made it apparent that he believes the App Store fees are a source of contention. In July 2021, Musk fired a tweet where he described it as a "de facto global tax on the internet."
Apple app store fees are a de facto global tax on the Internet. Epic is right.
— Elon Musk (@elonmusk) July 30, 2021
As 9TO5MAC reports, at the time, Musk supported the Epic Games discussion on whether Apple should open its App Store to allow customers to pick between other stores or if it should open its App Store to allow consumers to pay for digital goods in alternative ways.
Last year, Epic Games filed a high-profile lawsuit against the tech giant over the way the App Store is run. Apple does not allow within apps or alternate methods of accepting payment for digital goods, which results in developers having to pay the company a 15 or 30% commission on the sales of their digital goods.
Epic Games is also widely recognized as the creator and owner of the video game Fortnite. During the trial, Epic Games contended that Apple's intransigence constituted a monopoly, and the court ordered it to relinquish some of its power over the iPhone to a more manageable level.
Walled Garden of Apple
Elon Musk has previously expressed his dissatisfaction with the Apple App Store on multiple occasions. Another example from last year, Musk criticized the tech giant for building a "walled garden" and declared that 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 complete control of. The company restricts what software may be put on the iPhone and forces businesses to use its App Store in order to do business.
