Apple’s 30 percent app store “tax” has been long documented and is perhaps one of the least popular aspects of the company’s iOS store — at least from a developer standpoint. According to the company’s terms of service, Apple’s In-App Purchase method must be used for payments made within an iPhone app. From that, Apple takes a 30 percent cut of the proceeds.
But it seems that long-time critic of the “Apple tax,” Elon Musk, has found a way for Tesla’s companion app to dodge the charges. As reported by Gizmodo, Tesla could be bypassing the charge, which may add up to millions of dollars avoided. And, with the App Store known for its stringent policy of reviewing applications — even after updates are made — it would appear that the iPhone maker is OK with the practice employed by Tesla’s premium tier of app functions, known as “Connectivity Packages.”
While there are specific exceptions to Apple’s rule of routing in-app purchases through the company, such provisions are for features found on non-Apple hardware and not consumed on an iPhone. This would apply to many of the Tesla App’s premium functions, such as the option of unlocking a web browser for your car’s infotainment screen. However, Tesla’s Live View Connectivity features work exclusively in conjunction with an iPhone.
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Live View Camera allows those with the Connectivity Packages purchased to use their phone to monitor their Tesla’s cameras in real-time, as well as use the phone as a mic to project one’s voice via the car’s speaker system.
Apple’s rules stipulate that, although hardware-specific content can be unlocked without going through an in-app purchase, the option to make an in-app purchase (where 30 percent of takings are headed to Apple) must also be present. Tesla, however, does not offer In-App Purchase as an option to unlock its connectivity features.
The so-called Apple tax mandate has meant that other companies, such as Netflix and Spotify, no longer offer a way for new subscribers to sign up for their services via an Apple app, as the providers are unwilling to cover the 30 percent premium. Meanwhile, the game platform Epic Games is in an ongoing legal battle with Apple after the tech giant banned Fortnite from the app store. The ban was made because Epic displayed a link to in-game to buy credits via a web browser for 30 percent off, rather than the more expensive In-App Purchase option.
Last year, Elon Musk tweeted a (now deleted) meme suggesting that he would sooner go to war than pay 30 percent to Apple. Later in the year, the outspoken billionaire told his followers that he had been shown around Apple’s HQ, and that he and Apple CEO Tim Cook had resolved a misunderstanding about Twitter potentially being removed from the app store.