Apple- Trouble? Twitter, Meta and Coinbase Controversy
Apple (NYSE:AAPL) is very power dominant when it comes to Apple stores. First of all, Apple has the ultimate say in determining who is on its App store. If Apple wanted to, it could prevent any apps from being listed on its platform, and soon stop them from being downloaded on iPhones all around the globe. This will be a major blow for any company.
Secondly, Apple has the power to set charges between 15-30% for in-app purchases as well as charging for any apps to have the upper hand on app listing.
Last but not least, Apple had the power to stop advertising on any platform which was a major blow as Apple spent $64.8 million on paid search ads in 2020. Even if it was being segregated into 10 or more platforms. It is still a huge number to be missed.
Twitter - Elon Musk vs Apple Tweets Saga
Elon Musk asserted that Apple has halted most of its Twitter advertising, and also accused Apple of threatening to remove Twitter from its App store.
In a series of Tweets last November 29, 2022, Elon Musk tweeted about Apple’s sudden off from advertising on Twitter and addressed the Apple CEO, Tim Cook, in a tweet.
Bloomberg reported Apple’s spending on Twitter annual adverts exceeds $100 million. If the claim is proven to be true, it can hit Twitter miserably as the social media titan had already been under pressure. According to Media Matters, half of Twitter’s top 100 advertisers have paused their spending on Twitter since Elon Musk took over, including General Mills and Volkswagen, had halted theirs.
Elon Musk tries to make additional revenue for the company by turning Twitter verification into a paid subscription service of $8, but the main portion of Twitter’s revenue comes from advertising.
He also claimed that Apple had threatened to remove Twitter from its app store, but did not say why.
After several tweets accusing Apple, Elon Musk said he had met with Tim Cook on Wednesday and put the misunderstanding to an end.
Even with all the controversy, according to data from Pathmatics, Apple spent $84,615 on Twitter ads on the very same day. Apple also spent a full $104,867 on the previous day as well. Not only that, in the first quarter of 2022, Apple was Twitter’s top advertiser, making up 4% of its revenue for a total of $48 million, according to internal documents cited by the Washington Post.
The arising issue might be calmer now, but Elon Musk might attack again Apple’s in-app payment system, which takes an initial 30% cut of payments, followed by 15% after the first year.
Mark Zuckerberg – Meta CEO sides with Elon Musk over Apple App Store fees controversy
“It is problematic for one company to be able to control what app experiences end up on a device,” – said Mark Zuckerberg in an interview at the New York Times DealBook conference.
According to the Meta (NYSE:META) owner, Apple’s privacy restrictions have been extremely hard on the company. Meta predicted earlier this year that Apple’s App Tracking Transparency feature that added restrictions to how advertisers can track users would cost the firm a $10B drop in revenue by 2022. He also highlighted The majority of profits in the mobile ecosystem go to Apple.
Coinbase. After Twitter’s fight, Apple Blocks Coinbase Wallet Release on App Store
The 30% tax is here! Apple has begun enforcing its 30% tax on NFT transactions, and Coinbase (NYSE:COIN) isn’t felt delighted with the enforcement. Coinbase’s Wallet iOS application can no longer support NFT transactions due to Apple’s strict new policies on NFTs.
Coinbase Wallet’s official Twitter account shared the notice of NFT transactions can no-longer take place due to Apple being blocked on the App latest release until the feature is removed.
Not only that, Apple’s mobile app store, Coinbase also subjected to a 30% tax on every transaction. If any developers are not willing to comply with the requirement, their app will be blocked from the store. Apple’s claim is that the gas fees required to send NFTs need to be paid through their In-App Purchase system so that they can collect 30% of the gas fee.
“For anyone who understands how NFTs and blockchains work, this is clearly not possible,” Coinbase said.
Gas is fundamental to the Ethereum ecosystem, just as petrol is essential for a car to run or electricity is essential for a house to light up. In other words, gas fees are something that all Ethereum blockchain users must pay in order to perform any transaction.
Not only Twitter, Meta, and Coinbase, Epic Software, the company behind the popular Fornite Game, had been fighting Apple over in-app purchase fees for many years. In addition, Spotify (NYSE:SPOT) had to remove an audiobook feature that Apple wanted to charge a commission for.
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