Musk is biting the hand that feeds Twitter

This article was first featured in Yahoo Finance Tech, a weekly newsletter highlighting our original content on the industry. Get it sent directly to your inbox every Wednesday by 4 p.m. ET. Subscribe

Elon Musk’s endgame by going after Apple

Yahoo Finance tech editor Dan Howley explains Elon Musk's criticism of Apple, particularly around its App Store, and the potential ramifications for Twitter.

Wednesday, Nov. 30, 2022

Musk is taking on Apple. It might not end well.

Elon Musk has a new nemesis, and it might be one that’s too big even for him. On Monday the Tesla (TSLA) CEO and Twitter owner fired off a series of tweets criticizing Apple (AAPL) for pulling advertisements from the social media platform and claiming that the company threatened to remove Twitter from the App Store.

Musk is no stranger to picking fights from his keyboard. He’s famously tussled with everyone from members of Congress and the Securities and Exchange Commission to fellow billionaire Jeff Bezos. And while some have resulted in blow back, and lawsuits, Musk’s newest dust-up could cost his latest venture where it matters most: it’s bottom line.

“This is very much a one-way relationship, and Twitter is exceptionally dependent on Apple,” Forrester VP and research director Mike Proulx told Yahoo Finance. “For Apple, advertising on Twitter is at best nice to have. The Apple brand is incredibly strong and will continue to flourish without advertising on Twitter. But the same cannot be said in the opposite direction.”

Musk didn’t just stop at calling out Apple for cutting back on its ads on Twitter and threatening to delist the app from the App Store. He also chastised the company for charging developers a 30% fee on sales they make through the App Store. In another tweet he accused Apple of secretly suppressing free speech, and specifically called out CEO Tim Cook.

Musk’s gambit could be one of reasonable business concerns that have been echoed by firms ranging from Spotify (SPOT) to Microsoft (MSFT) mixed with his own usual online antics. But going after Apple could also backfire tremendously for the CEO. Especially if Apple were to remove Twitter from the App Store and its 1 billion users.