Musk supports Epic Games and calls Apple commission a tax on the Internet

Tesla CEO Elon Musk has backed Fortnite video game developer Epic Games in a dispute with Apple over an App Store commission. “App Store fees have become the de facto global tax on the Internet. Epic is right, ” he wrote on Twitter.

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Jin_Sakai49d ago (Edited 49d ago )

He’s right. Apple taking a 30% cut is ridiculous. They make billions off hardware unlike console makers who barely make anything. Sony, Microsoft, and Nintendo rely mostly on software to make money. Big difference.

OptimusDK49d ago

Yes they are subsidising their hw to sell games. Apple not so at all.

Darkborn49d ago (Edited 49d ago )

Xbox relies mostly on money ftom Microsoft, let's be real. They've gotten a dozen or more get out of jail free loans from Microsoft. Playstation and Nintendo invest and fund their own division from within that division.

sourOG49d ago

There is no difference. Either 30% is wrong or isn’t.

Darkborn49d ago

30% is used all across every storefront and marketplace pretty much around the world. It's how it is. You want to sell stuff in that store, regardless if it's digital merchandise or physical, it's usually 30% profit to that store. You can't change every business worldwide, and it's their right to charge what they want, and the right of a consumer to shop there, as well as the right of the merchant to put their product in that store. Epic signed a paper that said they will lose 30% on all sales. They went around that contract and made money outside of that on their devices. That's a breach of contract.

roadkillers49d ago

Agree'd. You can't say Sony, Microsoft, or Nintendo is justified for doing it because they lose money on hardware (which isn't always the case, PS4, Switch now post revenues because of economies of scale). Steam does the same thing, but with less take. Eventually, the developers will have to deal or move their software to a new platform. People do not buy phones for video games, hence people will not move because a video game is android only. That's why we have consoles and platforms.

sourOG49d ago

“You can’t change every business model worldwide”

False. Innovation happens all of the time. The shit we consider standard today wasn’t just a generation ago.

49d ago
thecodingart49d ago

“He’s right, no company should have a proven business model on existing ideals that works. It’s unfair to be better and they should be held to a different standard” 🤦‍♂️. Oh you people and your double standards and lack of logic.

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purple10149d ago

Agents or 'finders fee' is/ are usually 20% so 30 is really taking the biscuit considering they don't even do much for it. 20 is much more reasonable.

TheDoomedGuy49d ago (Edited 49d ago )

You're so right. They only invested in the entire platform.

Germaximus49d ago

Musk only cares cuz he wants in on the business. None of these billionairres give the tiniest crap about normal people. Nobody should care at all what he thinks.

LucasRuinedChildhood49d ago (Edited 49d ago )

Agreed. Musk personally pays almost no taxes (e.g. no income tax in 2018) despite his companies receiving billions in government subsidies, tax breaks and contracts, and being a billionaire himself. Not wanting to pay this "global tax on the internet" is just an extension of his greed.

While a reduction in this fee would benefit indie developers and small companies, you're right - he isn't thinking about normal people anyway.

dazzysima49d ago

Says the guy who tries to fix the crypto market…

demonseye48d ago

you can pretty much say succeeds at fixing the crypto market. his influence has been as big as countries' influence probably even more.

roadkillers49d ago

This is coming from a man who is making billions off of tax payer electric subsidies. In reality, that is where most of Teslas revenue comes from. If you get something from the Apple store, then I see no issue with Apple imposing a tax. The reality is that another company will come that supports devs better. Government should not get involved in the US and should let the free market correct the issue as it always does (look at the good reception of open platform on Steam Deck). There is also an option to bypass IOS and use Andriod or Windows. Playstation and Nintendo imposes as tax on their consoles, if it is wrong for Apple then it is wrong for those brands as well.

CruseMissle49d ago (Edited 49d ago )

That is 100% correct! People love to hate this because it’s Apple. But all these companies have this same tax. Epic tried to be funny and is now trying to force the gov to make apple put their games back on the App Store and cut the tax. But they are more then okay with giving Playstation money “for money lost on their App Store”.

Eamon49d ago (Edited 49d ago )

I agree that the 30% cut is not really the issue however the real issue is Apple's monopoly. Unlike Android, iOS is a closed system and Apple aggressively tried to shutdown jailbreaking over the years until they lost a groundbreaking court case not long ago.

Basically to explain the specifics: iOS only allows you to have access to the App Store and no other marketplace. You cannot download apps to your iPhone without the App Store. That's a form of monopoly. Ironically, in Epic's suit against them, Apple hit back saying that you "can" have access to other stores as jailbreaking is now legal. The funny part here is that Apple had previously been trying to make jailbreaking illegal and now they're using it as their defence. They are also always trying to fix every exploit that enables jailbreaking in new iOS updates. Because of these practices, over 90% of app purchases on an iPhone are through the App store.

The idea that the "market will correct itself" has been disproven all the time for centuries now. As long as there are some kind of structure/system in place, smart people will try to exploit it as much as possible to profit. This is why you regulate, and this is why there are antitrust laws.

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