Elon Musk, the owner of X, formerly known as Twitter, has announced his intention to hold discussions with Apple CEO Tim Cook regarding the possibility of reducing App Store fees for creators on the X social network. Musk’s proposal involves requesting Apple to apply a 30 per cent cut only to the portion of the creator fee that Twitter retains, rather than taking 30 per cent of the entire fee earned by a creator on the platform.
As part of Twitter’s support for creators, Musk stated that they have no plans to collect any fees from creators earning less than $100,000. For those surpassing this threshold, Twitter would retain 10 per cent of a creator’s earnings, but the first year would be fee-free for all creators.
Under Musk’s proposal, if Apple agrees, the company would be entitled to a 30 per cent cut of the 10 per cent fee that Twitter collects from creators earning over $100,000. This move aims to give creators on the X social network a more favourable fee structure.
Currently, Apple collects in-app purchase fees for subscription transactions made through the Twitter app on iOS devices. During the first year of a subscription, Apple takes 30 per cent, and subsequently, 15 per cent for each following year. This policy applies the fee to all digital purchases on the App Store.
However, Musk’s request may not align with the current in-app purchase setup, as Apple directly charges its fee from each subscriber paying a creator, rather than from the creator themselves.
It is worth noting that in the past, Elon Musk has criticized Apple’s App Store fees, labelling the collected cut as “definitely not ok” and likening it to a “30% tax on the internet.” His proposal to discuss reducing App Store fees for X social network creators reflects his ongoing concerns about the impact of these fees on online platforms and their users.