A lot of app developers — big and small — have expressed their displeasure at Apple charging commission for all transactions done through the App Store. Elon Musk threatened to go to ‘war’ with Apple. However, he then had a meeting with Apple CEO Tim Cook at Apple Park in Cupertino. Now, Musk has once again suggested that he will speak to the Apple CEO. The issue? Apple tax.

In a post on X, Musk said that the platform wants to give incentives to creators. “Super Important to Support Creators!”, was his message. He said urged X users — who can afford it — “please subscribe to as many creators on this platform as you find interesting.”

Musk also highlighted the fact that “people from every corner of the world post incredible content on 𝕏, but often live in tough circumstances.” He added that “even a few hundred dollars a month changes their life.”

X and Musk are giving incentives to a lot of creators. The platform made it clear that for 12 months, it won’t be taking any cut from creators and then 10% of what they make. “We are amending that policy to 𝕏 keeps nothing forever, until payout exceeds $100k, then 10%. First 12 months is still free for all,” he added.

So where does Apple come in?

Apple charges to developers for selling their apps or digital content on the Apple App Store. The standard commission rate is 30% for most apps and in-app purchases. This means that for every sale or in-app transaction, Apple retains 30% of the revenue, and the developer receives the remaining 70%.

Apple has faced criticism from some developers and companies for the high commission rate, claiming that it is an unfair and anticompetitive practice. Critics argue that the high ‘Apple tax’ limits developers’ revenue and restricts their ability to offer competitive pricing for their apps and services.

In response to this criticism and increasing antitrust scrutiny, Apple has made some changes to its App Store policies. In 2020, Apple introduced the App Store Small Business Program, reducing the commission to 15% for developers earning less than $1 million annually from the App Store.

Musk said that he will speak with Tim Cook and “see if that can be adjusted to be just 30% of what 𝕏 keeps in order to maximise what creators receive.” Its unlikely Apple makes any special adjustment for Musk and X.

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