Twitter CEO Elon Musk has made a move to offset Apple App Store’s outrageous fees by charging iOS users $11 per month for Twitter blue plan subscription.
The blue premium subscription is a service that elevates quality conversations on Twitter, with the plan fee set at $7 per month.
Following the recent increase in price for iOS users, Twitter has mandated existing Twitter Blue subscribers who initially subscribed on iOS to upgrade to the higher price to receive a blue checkmark. These users will also receive a prorated refund for the remaining days of their previous subscription.
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Apple on the other hand is known to charge a 30% tax on app developers who make over $1 million through the app store on an annual basis.
This has never sat well with Musk who has on several occasions called out the company, which he last month described their fee as a “secret tax”.
Also, last year, he stated that Apple’s app store fees are a “De facto global tax” on the Internet.
Recall that Musk last month alleged that Apple threatened to remove Twitter from its App Store, which he stated that if the microblogging platform is removed, he will go ahead to make an alternative phone that can work with the platform.
However, he has recently come out to backtrack on his allegations by disclosing that Apple never considered pulling down Twitter from its app store after he had a meeting with the company’s CEO Tim Cook.
In his words, “Tim was clear that Apple never considered doing so”.
However, Musk isn’t the only one disgruntled by Apple’s app store fees, as many developers have taken issue with the company’s 30% cut, claiming that it is too expensive.
In 2018, Video streaming company Netflix considered disabling its users to subscribe to services from their iPhones because it didn’t want to pay the 30% cut that goes to Apple for in-app purchases.
Amid increased regulatory scrutiny over how it runs its App Store, Apple in 2020 announced the reduction of App Store commissions for smaller businesses.
Under the new guidelines of the “App Store Small Business Program,” developers earning up to $1 million per year will only have to pay a 15%.
Once developers’ apps surpass the $1 million threshold, they’ll be moved to the standard commission rate, generally 30%.
However, in defense of its presumed high App store fees, Apple has stated that such fees could be defended on the grounds of its great innovation in the market.
On its restrictive rules, Apple says its restrictions are crucial to iPhone’s safe hassle-free appeal while noting that it vets all the apps in its app store for security, privacy, and suitability.
In addition to the App Store, Apple’s Services business includes other subscription offerings, including AppleCare, Apple Music, Apple Pay, Apple TV+, Apple Music, Apple News+, and more.