Can Elon Musk afford to go to war with Apple?
Apple’s Tim Cook is shaping up as social media’s most effective sheriff – with his latest intervention a threat to remove the Twitter app from the App Store.
It’s not an idle threat, and with Cook’s loaded pistol is pointed directly at an already wounded Elon Musk.
The genius of Cook’s move is that he hasn’t said a word about it publicly. He has left that job for Twitter’s new owner, who has already shown a willingness to run the business through public consultation over the social media platform.
In a series of panicked tweets overnight Musk railed about Apple’s threat to “withhold” it from the App Store, a move that would make it almost impossible for Twitter to update its app and pose a threat to its distribution channel.
Apple has good form on this matter. In 2021, it removed the right-wing social media platform Parler from its App soon after attacked on the United States Capitol building by Trump supporters. Parler was later reinstated, but Apple’s actions were crucial in preventing the site from gaining wider traction.
It’s also had no qualms in shutting the door to popular apps like Fortnite after it took offence to Epic Games, the company behind Fortnite, selling things to users directly over the app. That stoush is playing out in the US courts.
Just how much power Apple holds as a gatekeeper is borne out by the damage it has wreaked to Facebook by curbing its ability to track users and target them with advertisements. Apple’s decision to tweak how ads work on its operating system, iOS, could cost Facebook up to $US12 billion in revenue this year and remove its growth stock credentials.
Marketing itself as a privacy protector has been a deliberate ploy by Apple to burnish its credentials as a defender of consumer privacy. And given the reach of the iPhone and other Apple devices, Cook holds the power to make to decimate Twitter’s already shaky business, if the current war of words takes a turn for the worse.
Apart from the threat of exile from the App Store, Apple has traditionally been one of Twitter’s largest advertisers. According to Musk, Apple has already removed most of its advertising – even though Apple has remained silent on the issue.
Phil Schiller, who leads Apple’s App Store, has also reportedly deleted his Twitter account, a move that would suggest that Musk’s business relationship with Apple are in choppy waters.
If Apple’s alleged displeasure is successful in forcing Musk to moderate his ‘free speech absolutist’ approach to what is said on Twitter, it would be a feat that governments around the world have been unable or unwilling to undertake.
After executing possibly the worst takeover in history for Twitter, Musk has already shot himself in the financial-foot by allowing a string of controversial users back – including former US president Donald Trump.
Advertisers have been leaving Twitter in droves and plenty of users are saying they will do the same.
Media Matters reports that in recent weeks, 50 of the top 100 advertisers have either announced or ‘seemingly stopped advertising’ on Twitter. It said these advertisers have accounted for nearly $US2 billion in spending on the platform since 2020, and over $US750 million in advertising in 2022 alone.
Apple may be the sheriff in town, but it looks like Musk would rather take Cook head on than have him dictate terms. However, Musk doesn’t appear to appreciate (or is ignoring the fact) that he has little leverage and is effectively taking a knife to a gunfight.
Twitter’s new owner has so far accused Apple of “censorship” and criticised its policies, including the charge it levies on purchases made on its app store, to drum up support for a defence against Apple. More statements are likely from Musk, that is until he moves on the next big, shiny thing on his radar, but letting the sabre-rattling escalate into a full-blown war would be a risky strategy.
Cook’s silence on the subject provides Musk an opportunity to let thing settle and avoid the catastrophic outcome of Twitter being removed from the app store.
The tech billionaire has made it clear that he wants to revive Twitter’s financial fortunes, with charging for Twitter verification the first step, but any to plan to save the social media platform without Apple’s goodwill will struggle to succeed.
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Source: Thanks smh.com