Home News Elon Musk Proposes ‘Conversation’ with Apple CEO Tim Cook on App Store Fees

Elon Musk Proposes ‘Conversation’ with Apple CEO Tim Cook on App Store Fees

by khushahal vishwakarma

Elon Musk has proposed reducing the App Store fees for creators on the social networking platform, X (formerly known as Twitter), in a bid to support creators.

As part of the support for creators, Musk stated that there is no plan to charge creators earning less than $100,000 any fees (AFP).

Elon Musk, the owner of X, announced that he wishes to discuss the possibility of reducing the App Store fees for creators who earn money through subscriptions on the social networking platform with Apple’s CEO, Tim Cook.

Musk’s proposal to Apple includes requesting the company to apply a 30% cut only to the portion of the creator’s earnings that Twitter retains, instead of taking 30% of the total revenue earned by the creator on the platform.

As a show of support for creators, Musk emphasized that there will be no fees for creators earning less than $100,000, and for those surpassing this limit, Twitter will keep 10% of their earnings, but the first year will be fee-free.

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If Apple agrees to this proposal, the company will be entitled to a 30% cut from the 10% fee charged to creators who earn more than $100,000 and contribute to the platform through Twitter.

For unknown individuals, Apple currently collects in-app purchase fees from Twitter subscriptions on iOS devices. During the first year of subscription, Apple takes 30%, and after that, it reduces to 15% for each subsequent year. Apple’s policy applies this fee to all digital purchases on the App Store and is maintained consistently without exceptions.

However, it is unlikely that Musk’s request will align with the current in-app purchase setup, as Apple directly charges the creator who pays, rather than the platform taking a cut.

In the past, Elon Musk had criticized Apple’s App Store fees, considering the aggregated cut as “definitely not right” and comparing it to the “30% tax” on the internet.

Here’s the full text of Musk’s tweet:

Supporting creators is extremely important!

If you can, please subscribe to as many creators as you find interesting on this platform.

People from all over the world post incredible content on X, but often struggle in difficult circumstances where even a few hundred dollars per month can change their lives.

While we previously said that X would keep nothing for the first 12 months, then 10%, we are revising this policy now. X will never keep anything for the first $100k, then 10%. The first 12 months are still free for everyone.

Apple takes 30%, but I will talk to @tim_cook and see if we can allocate this to X up to only 30% to maximize the amount going to creators.

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