Elon Musk’s 30% cut in Twitter fees will save Twitter, says Apple writer

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Elon Musk’s 30% cut in Twitter fees will save Twitter, says Apple writer

It seemed last week that Twitter owner Elon Musk could be preparing for a showdown with Apple, Inc. AAPL, but the billionaire later confirmed that all is well between the two.

If it comes to an all-out war with Apple, Twitter will struggle to survive, he said. The App Store gives Twitter access to 1.5 billion devices, according to the Apple writer.

The complexity of that endeavor makes it highly unlikely, as Musk stated that he will build his own phone and operating system to sidestep the issue.

If Apple blocks Twitter, its top executives could end up testifying on Capitol Hill for weeks, he said. He said that the Apple brand could take a hit because it was seen as politically biased.

The App Store Fee Big Deal For Musk: Although Musk tried to deflect attention towards Apple censorship, his bigger concern is the 30% fee that the company charges the App Store, according to Gurman.

If Twitter doesn't pay the 30% commission, Apple will likely pull the app if it doesn't get the required amount of leeway, according to the columnist. The 30% cut matters, given that Musk paid $44 billion for the Twitter purchase, and now he wants to fix the company and resell it or take it public within three years, Gurman said.

Although Musk and Apple CEO Tim Cook talked about the differences after the former snubs, Gurman believes that the standoff may be far from over.

Cook will be left with no option but to boot Twitter out if Musk circumvents App Store fees by using his own payment system.

The Apple CEO may not want it to come to this, Gurman said. He said that Apple's opposition stems not from the money it would lose from Twitter fees but from the fact that it's likely that such a development will cause a domino effect on other apps that are looking to do the same.

The entire App Store business will be crashing down because of this, according to Gurman.

It's a solution that will allow both companies to avoid a crisis, while also helping Musk get his full $8 for Twitter Blue subscriptions, according to Gurman.

This is legal because of section 3.1. So long as they are also available through in-app purchase, he noted that subscriptions can be carried over from other platforms, such as the App Store guidelines, as well as the Multiplatform Services Rule, as per the 3 b of the App Store guidelines.

For web users, it will likely encourage users to use the web version, as it can charge $8 for web users and $10- $11 for using the app on the iPhone.

By carefully leveraging the App Store rules, Musk could essentially circumvent Apple's 30% cut and keep his app on the App Store, avoiding a dilemma for both himself and Apple, Gurman said.

I think Cook and Apple would consider that a win. See also: Tesla Bull Says Time For Tim Cook To Step Down: Apple In 'Serious Trouble' If Elon Musk's Company Begins Making Phones

Courtesy of the shutterstock and ACC District on flickr