Skip to content

Elon Musk takes on Apple’s power and sets up a clash

    SAN FRANCISCO – “What’s Happening Here @tim_cook?” Elon Musk tweeted on Monday to Tim Cook, Apple’s CEO, who sparked a feud between the world’s richest man and the world’s most valuable public company.

    In a series of tweets lasting more than 15 minutes, Mr. Musk, the new owner of Twitter, has threatened Apple to keep Twitter out of the App Store, a move that would deter some new users from downloading the app. The action would amount to censorship, Mr Musk said, with no explanation from Apple as to why Twitter would be blocked. He added that Apple had also reduced its ad spend on Twitter.

    In his tweets, Mr. Musk paves the way for a power struggle with Mr. Cook, who has enormous influence over other technology companies due to Apple’s dominance. Mr. Musk now has a vested interest in Apple’s influence because of his ownership of Twitter, which he bought last month for $44 billion. Twitter is distributed through Apple’s App Store and is used by iPhone and iPad owners around the world. In a tweet, Mr. Musk that he was ready for a “war” with Apple.

    Mr. Musk has been poised to confront Apple since taking over Twitter. His business plan is based on shifting revenue from a reliance on advertising to a greater reliance on subscription sales. But any new subscription revenue will be subject to Apple’s practice of discounting as much as 30 percent.

    Mr. Musk’s complaints also come at a critical time for Apple. There is pressure in Congress during the final months of the year to pass a series of antitrust laws. One of the bills under consideration is the Open App Markets Act, which aims to give developers more control over their apps and allow them to get around fees charged by Apple and Google.

    “Elon is the latest chapter in an effort to reduce App Store costs, and this will revive a topic that has been fairly quiet for the past six months,” said Gene Munster, managing partner of Loup Ventures, a technology research firm. He said he expected a future where App Store costs were reduced to about 20 percent.

    Mr Musk and an Apple spokesperson did not respond to requests for comment.

    Apple has increasingly faced backlash from app developers and pressure from regulators and politicians around the world over App Store policies. The App Store has become a major gateway where billions of iPhone users download Twitter, Facebook, Snapchat, games and all sorts of other programs, making it an arbiter of software distribution.

    Apple uses the fees it collects from its App Store, which was founded in 2008, to pay a staff of several hundred people who review every app it distributes. The company has said its app reviewers protect customers’ privacy and security and prevent them from being subjected to fraud.

    One of the things the reviewers are investigating is the use of Apple’s in-app payment system, which has helped the company collect an estimated $22 billion in developer fees annually, according to Sensor Tower, a market research firm.

    In 2019, Epic, the maker of the Fortnite video game, sued Apple for anti-competitive behavior with its App Store. Last year, the judge ruled in the case largely in favor of Apple, saying the company was protecting customer privacy and security. But the judge also issued a ruling that would require Apple to allow developers to link customers to their own payment systems. Both Epic and Apple are appealing.

    On Monday, Tim Sweeney, Epic’s chief executive officer, expressed his support for Mr. Musk on Twitter. Mr Sweeney pointed out that Apple kicked Epic out of the App Store when it similarly defied the tech giant’s policies. He wondered if Apple would fire up every developer who complained about it, a list that now includes Meta’s Facebook, Spotify and Twitter.

    “Apple blocked Fortnite within hours of Epic defying their policies,” Mr. Sweeney tweeted. “Would they destroy Twitter? Spotify? Facebook? Netflix? At what point does the whole rotten structure collapse?”

    Apple has harassed app developers for other reasons. Last year it made a series of technical changes to improve people’s privacy on mobile apps. Those shifts made it more difficult for many apps to target mobile ads to users, prompting leading tech executives, including Mark Zuckerberg, the CEO of Meta, which owns both Instagram and Facebook, to speak out.

    Apple has also required companies to create a “safe experience” for their apps to be listed in the App Store. After the Jan. 6 riot at the US Capitol last year, Apple blocked the free speech social network Parler from its App Store until the service introduced guardrails to prevent calls for violence on the service.

    “During my time at Twitter, app store representatives have regularly raised concerns about the content available on our platform,” Yoel Roth, former head of trust and security at Twitter, wrote in an editorial in The New York this month. Times. Mr Roth said App Store reviewers had raised concerns about pornography and racist comments on Twitter.

    Mr. Musk’s purchase of Twitter has upended the relative harmony between Twitter and Apple. As an outspoken user of the platform, with nearly 120 million followers, Mr. Musk often uses Twitter to bully business rivals like Bill Gates or Sam Bankman-Fried. His feud with Mr. Cook could become “a revolution against online censorship in America,” Mr. Musk tweeted on Monday.

    Last week, Musk also mused about building his own phone if Apple and Google launched Twitter from their app stores. “I certainly hope it doesn’t come to that, but yes, if there’s no other way, I’ll make an alternative phone,” he says. tweeted.

    Apple has urged Mr. Musk to keep the status quo. In an interview with “CBS Mornings” this month, Mr Cook was asked if there was any risk of Twitter being removed from the App Store. He said Twitter would remain dispersed and praised its commitment to moderating offensive content.

    “I don’t think anyone wants hate speech on their platform, so I’m counting on them continuing to do that,” Cook said.

    Phil Schiller, a longtime Apple executive who helps oversee the App Store, recently deleted his Twitter account when Mr. Musk put former President Donald J. Trump back on the platform. mr. Cook continues to use Twitter and last week used it to wish his followers a happy Thanksgiving.

    Mr. Musk’s attacks on Apple’s leadership could pose challenges for the tech giant “in Congress, where Big Tech is still a target,” Loup Ventures’ Mr. Munster said. Republicans in Congress have embraced Musk’s purchase of Twitter because he has pledged to restore free speech, an issue they often talk about. Mr. Musk resonates with that group, which is emerging in Washington, Mr. Munster said.

    In September, Cook met with Republican congressional leaders, including Rep. Kevin McCarthy of California, and discussed the importance of free speech online, two people familiar with those conversations said. Because Apple doesn’t have any social media platforms, it’s largely avoided being dragged into that debate until now.