SpaceX Chief Engineer Elon Musk takes part in a joint news conference with T-Mobile CEO Mike Sievert (not pictured) at the SpaceX Starbase, in Brownsville, Texas, U.S., August 25, 2022.
Adrees Latif | Reuters
Elon Musk has announced big, albeit confusing, plans for Twitter since he took over the social network last month.
Musk wants to vastly increase the revenue the company makes through subscriptions while opening up the site to more “free speech,” which in some cases seems to mean restoring previously banned accounts like the one owned by former president Donald Trump.
But Musk’s plans for Twitter could put it in conflict with two of the biggest tech companies: Apple and Google.
Tensions are brewing
One of the biggest risks to Musk’s vision for “Twitter 2.0” is the possibility that his changes violate Apple or Google’s app rules in a way that slows down the company or even gets its software booted from app stores.
Tensions are already brewing. Musk complained in a tweet just last week about app store fees that Google and Apple charge companies like Twitter.
“App store fees are obviously too high due to the iOS/Android duopoly,” Musk tweeted. “It is a hidden 30% tax on the Internet.” In a follow-up post, he tagged the Department of Justice’s antitrust division, which is reportedly investigating app store rules.
His complaint is over the 15% to 30% cut Apple and Google take from purchases made inside apps, which could eat into the desperately-needed revenue from Musk’s plans for $8 per month from Twitter Blue subscriptions.
Over the weekend, Phil Schiller, the former head Apple marketing executive who still oversees the App Store, apparently deleted his widely-followed Twitter account with hundreds of thousands of followers.
Phil Schiller, senior vice president of worldwide marketing at Apple Inc., speaks at an Apple event at the Steve Jobs Theater at Apple Park on September 12, 2018 in Cupertino, California.
Justin Sullivan | Getty Images
There are signs Twitter has already seen an increase in harmful content since Musk has taken over, putting the company’s apps at risk. In October, shortly after Musk became “chief Twit,” a wave of online trolls and bigots flooded the site with hate speech and racist epithets.
The trolls organized on 4chan, then barreled into Twitter with anti-Black and Jewish epithets. Twitter suspended many of the accounts, according to the nonprofit Network Contagion Research Institute.
Musk’s plan to offer paid blue verification badges have also led to chaos and accounts impersonating major corporations and figures, which have caused some advertisers to shy away from the social network, in particular, Eli Lilly after a fake verified tweet erroneously said insulin would be provided for free.
The app stores noticed.
“And as I departed the company, the calls from the app review teams had already begun,” former Twitter head of trust and safety Yoel Roth wrote this month in the New York Times.
Fees and subscription revenue
Twitter and Apple have been partners for years. In 2011, Apple deeply integrated tweets into its iOS operating system. Tweets that function as official company communications are regularly posted under Apple CEO Tim Cook’s account. Apple has advertised new iPhones and its big launch events on Twitter.
But the relationship appears poised to change as Musk moves to generate a larger bulk of income from subscriptions.
Twitter reported $5.08 billion in revenue in 2021. If half of that comes from subscriptions in the future, as Musk has said is the goal, hundreds of millions of dollars would end up going to Apple and Google — a small amount for them, but a potentially massive hit for Twitter.
One of Apple’s main rules is that digital content — game coins, or an avatar’s outfit, or a premium subscription— that’s purchased inside an iPhone app, has to use Apple’s in-app purchasing mechanism, in which Apple bills the user directly. Apple takes 30% of sales, decreasing to 15% after a year for subscriptions, and pays the remainder to the developer.
One option for Musk is to take an approach similar to what Spotify has done: Offer a lower $9.99 price on the web, where it doesn’t pay Apple a cut, and then users simply log in to their existing account inside the app. Users subscribing to a Premium subscription inside the iPhone app pay $12.99, effectively covering Apple’s fees.
Or Twitter could go further, like Netflix, which stopped offering subscriptions through Apple entirely in 2018.
Musk could sell Twitter Blue on the company’s website at a cheaper price and tweet to his over 118 million followers that Blue is only available on Twitter.com. It might work and could help cut Apple out of any fees.
But that also means Twitter would have to remove many options for informing users about the subscription inside the app, where they’re most likely to make a purchasing decision. And Apple has detailed rules about what apps can link to when telling users about alternative ways to pay.
As Netflix’s app says: “You can’t sign up for Netflix in the app. We know it’s a hassle.”
A power struggle over content moderation
Tim Cook, chief executive officer of Apple Inc., speaks during the Apple Worldwide Developers Conference (WWDC) in San Jose, California, U.S., on Monday, June 4, 2018.
David Paul Morris | Bloomberg | Getty Images
Musk faces the power of Apple and Google and their ability to decline to approve or even pull apps that violate their rules over content moderation and harmful content.
It’s happened before. Apple said in a letter to Congress last year that it had removed over 30,000 apps from its store over objectionable content in 2020.
If app store-related problems strike Twitter, it could be “catastrophic,” according to the former Twitter head of trust and safety Roth. Twitter lists app review as a risk factor in filings with the SEC, he noted.
Apple and Google can remove apps for various reasons, like issues with an app’s security and whether it complies with the platform billing rules. And app reviews can delay release schedules and cause havoc whenever Musk wants to launch new features.
In the past few years, the app stores have started more closely scrutinizing user-generated content that starts shading into violent speech or social networks that lack content moderation.
There’s precedent for a complete ban. Apple and Google banned Parler, a much smaller and conservative-leaning site, in 2020 after posts on the site promoted the U.S. Capitol riot on Jan. 6 and included calls for violence. In Apple’s case, the decision to ban high-profile apps is made by a group called the Executive Review Board, which is led by Schiller — the Apple executive who deleted his Twitter account over the weekend.
Although Apple approved Truth Social, Trump’s social networking app, in February, it took longer for Google Play to approve it. The company told CNBC in August that the social network lacked “effective systems for moderating user-generated content” and therefore violated Google’s Play Store terms of service. Google eventually approved the app in October, saying that apps need to “remove objectionable posts such as those that incite violence.”
Musk reportedly fired many of Twitter’s contact content moderators this month.
Apple and Google have been careful while banning apps like Parler, pointing to specific guideline violations like screenshots of the offending posts, instead of citing broad political reasons or pressure from lawmakers. On a social network as large as Twitter, it’s often possible to find content that hasn’t been flagged yet.
Still, Apple and Google are unlikely to want to wade into a difficult battle over what constitutes harmful information and what doesn’t. That could end up inviting public scrutiny and political debate. It’s possible that app stores simply delay approving new versions instead of threatening to remove apps entirely.
Future features could also irk Apple and Google and prompt a closer look at the platform’s current operations.
Musk has reportedly talked about allowing users to paywall user-generated videos — something that former employees think would lead to the feature being used for adult content, according to the Washington Post.
Apple’s App Store has never allowed pornography, a policy that dates back to the company’s founder, Steve Jobs, and Google also bans apps centered around sexual content.
Anything that isn’t safe for work needs to be hidden by default. Twitter currently allows adult content, which could put it even more directly into reviewer sights.
“Apps with user-generated content or services that end up being used primarily for pornographic content … do not belong on the App Store and may be removed without notice,” Apple’s guidelines say.
But Musk often runs towards battles, not away from them. Now he has to decide whether it’s worth taking on two of the most valuable and powerful companies in Silicon Valley over 30% fees and Twitter’s ability to host edgy tweets.
An Apple representative didn’t respond to a request for comment. A Google representative declined to comment. Twitter didn’t respond to an email and the company no longer has a communications department. Musk didn’t respond to a tweet.
Alice Weidel, co-leader of the far-right Alternative for Germany (AfD) political party, arrives to speak to the media with AfD co-leader Tino Chrupalla shortly after the AfD leadership confirmed Weidel as the party’s candidate for chancellor on December 07, 2024 in Berlin, Germany.
Maryam Majd | Getty Images
Elon Musk used his social network X to promote Germany’s far-right Alternative for Germany party, known as AfD, hosting a live discussion Thursday with party leader Alice Weidel, a candidate for chancellor, ahead of a general election on Feb. 23.
“I’m really strongly recommending that people vote for AfD,” Musk, who is CEO of Tesla and SpaceX in addition to his role at X, said about a half hour into the conversation. “That’s my strong recommendation.”
The AfD has been classified as a “suspected extremist organization” by German domestic intelligence services. The party’s platform calls for rigid asylum laws, mass deportations, cuts to social and welfare support in Germany, and the reversal of restrictions on combustion engine vehicles.
Thierry Breton, former European Union commissioner for the internal market, said in a Jan. 4 post on X directed at Weidel: “As a European citizen concerned with the proper use of systemic platforms authorized to operate in the EU … especially to protect our democratic rules against illegal or misbehavior during election times, I believe it’s crucial to remind you” that a live discussion on X would give AfD and Weidel “a significant and valuable advantage over your competitors.”
While AfD has amassed about 20% of public support, according to reporting from broadcaster DW, the party is unlikely to form part of a coalition government, as most other parties have vowed not to work with it.
AfD previously protested the build-out of Tesla’s electric vehicle factory outside Berlin, in part because the factory would provide jobs to people who were not German citizens.
Musk’s earlier endorsements of AfD, including tweets complimenting the party and an editorial in a German newspaper, have enraged European government officials. Musk, the wealthiest person in the world, has also endorsed far-right and anti-establishment candidates and causes in the U.K.
Political leaders in France, Germany, Norway and the U.K. denounced his influence, NBC News previously reported, warning that Musk should not involve himself in their countries’ elections.
Musk, who was one of President-elect Donald Trump’s top backers in November’s election, previously promoted Trump in a live-streamed discussion on X. Before that, he hosted a conversation with Florida Gov. Ron DeSantis, who lost to Trump in the Republican primary.
Weidel during Thursday’s talk asked Musk about what Trump might do to bring Russia’s war in Ukraine to a conclusion, as the president-elect has suggested he could quickly do.
Musk demurred.
“To be clear this is up to President Trump, he is commander and chief, so it’s really up to him,” Musk said. “I don’t want to speak for him but you know I do think that there is a path to a resolution but it does require strong leadership in the United States to get this done.”
Musk also weighed in on what he thought should be done in Gaza, which has been under attack from Israel since Hamas’ deadly incursion into Israel on Oct. 7, 2023.
“There’s no choice but to eliminate those who wish to eliminate the state of Israel, you know Hamas essentially,” Musk said. “Then, the second step is to fix the education so that Palestinians are not trained from when they are children to hate and want the death of Israel.”
“Then, the third thing, which is also very important, is to make the Palestinian areas prosperous.”
President Donald Trump shakes hands with Microsoft CEO Satya Nadella during an American Technology Council roundtable at the White House in Washington on June 19, 2017.
Nicholas Kamm | AFP | Getty Images
Microsoft said Thursday that it’s contributing $1 million to President-elect Donald Trump’s inauguration fund.
The software maker is now more closely aligned with its highly valued peers in the technology industry. Google said earlier on Thursday that it’s donating $1 million to the Trump fund, and Meta offered the same amount in December. Amazon was reportedly looking to make a similar contribution.
OpenAI CEO Sam Altman said in December that he would contribute $1 million individually, and Axios reported last week that Apple CEO Tim Cook will do the same.
Elon Musk, Tesla’s CEO and the world’s richest person, has been advising Trump as he prepares to return to the White House following the inauguration later this month.
Microsoft also contributed $500,000 to the first inauguration fund for Trump’s first term and gave the same amount to President Joe Biden’s fund, a Microsoft spokesperson told CNBC.
Satya Nadella, Microsoft’s CEO, has met with Trump on multiple occasions, including over negotiations surrounding a possible acquisition of TikTok in the U.S. in 2020. Nadella also joined a Trump roundtable of technology executives from around the country in 2017.
Microsoft is hoping that under Trump, the U.S. will push artificial intelligence policy in a favorable direction.
“The United States needs a smart international strategy to rapidly support American AI around the world,” Brad Smith, Microsoft’s vice chair and president, wrote in a blog post last week.
Artwork for Ubisoft’s upcoming “Assassin’s Creed Shadows” game.
John Keeble | Getty Images
French video game publisher Ubisoft said Thursday it’s appointing advisors to review and pursue strategic options after a report last year suggested that its majority backers were considering a buyout.
Ubisoft said in a strategic update that “leading advisors” had been hired to explore “transformational strategic and capitalistic options to extract the best value for stakeholders.”
“This process will be overseen by the independent members of the Board of Directors. Ubisoft will inform the market in accordance with applicable regulations if and once a transaction materializes,” the company said in a statement late Thursday.
In October, Bloomberg News reported that the Guillemot family who founded Ubisoft nearly four decades ago, and Chinese tech giant Tencent were considering a potential takeover of the firm. Shares of Ubisoft skyrocketed more than 30% on the report at the time.
“We are convinced that there are several potential paths to generate value from Ubisoft’s assets and franchises,” Yves Guillemot, co-founder and CEO, said Thursday, addressing the firm’s strategic plan.
The Bloomberg report followed a decision by Ubisoft to delay the release of the latest title in its popular “Assassins Creed” video game series, “Assassin’s Creed Shadows” by three months, to February 2025.
On Thursday, Ubisoft postponed the launch of “Assassin’s Creed Shadows” again, pushing it back to March 20.
Shares of Ubisoft have declined 45% in the past 12 months amid woes surrounding its pipeline of blockbuster title launches, as well as doubts over the company’s strategic direction.
Last year, activist investor AJ Investments called on Ubisoft to sell itself to private equity or Tencent. At the time, the investment firm said it had gained the support of 10% of Ubisoft’s shareholder base for its campaign.
The game maker had also garnered criticisms for plans to include a paid “Season Pass” for its new Assassin’s Creed game, which would have provided gamers access to a bonus quest and additional downloadable content at launch.
After gamers slammed the decision as adopting a “pay-to-play” model, Ubisoft decided to shelve plans for the paid feature.
Ubisoft is under pressure to prove it can turn things around. On Thursday, the company doubled down on a commitment to cut costs, saying it now expects to reach more than 200 million euros ($206 million) of cost reductions by full-year 2025 to 2026 compared to 2022 to 2023 on an annualized basis.