The billionaire bought Twitter for $44 billion at the end of October.
(Photo: REUTERS)
san francisco Elon Musk is in his element. In a series of tweets, he lashed out at a rival on Twitter. This time it hit the iPhone company Apple. The richest man in the world accused the technology group of abusing its market power. Accordingly, Apple threatened to no longer allow Twitter on iPhones in the future.
Musk also criticized the fees Apple charges. Musk believes the 15 to 30 percent levy on subscription revenue generated within apps like Twitter is excessive. Musk’s goal is to generate around half of Twitter’s sales from subscriptions in the future. A new offer on which Musk has to give a larger part to Apple for iPhone users costs eight dollars a month.
Musk is right to denounce Apple’s market power. The iPhone group controls which content can be played on the end devices and keeps a large part of the proceeds for itself. The criticism is not new. Apple and game provider Epic Games went to court over the fees. Musk could fuel the conflict again.
With the iPhones and the associated iOS operating system, Apple has created an environment that is completely dominated by the technology group. Every app developer must have their application tested before they are approved.
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The rules for this are vaguely formulated. In the end, it often remains unclear why which app is released when and when not. Apple justifies the high fees by providing the infrastructure for the apps.
But Apple’s power goes too far. While Apple preaches transparency and openness in the US and Europe, the company blocked apps in China that could be used to circumvent Chinese internet censorship. In Hong Kong, apps used by demonstrators to organize themselves have been blocked.
In addition, Apple has trimmed the business with third-party apps for maximum profitability. Analysts estimate that the app store fees achieve the highest profit rates of any product in the group. Estimates assume a return on sales of more than 90 percent.
Ironically, the EU could help to ensure more competition on iPhones. The new digital market law provides stricter rules for the role of powerful technology groups. Epic Games had largely lost in the case against Apple in the United States. Musk, on the other hand, could sue Apple in Europe. The chances of success are likely to be significantly higher than in the US.
More: Musk attacks Apple with tweet series.