Microsoft claims App Store’s 30% fee “makes it impossible” to monetise its cloud gaming service

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Microsoft has taken another swipe at Apple in its attempts to get its cloud gaming business up and running on the App Store by claiming the iOS giant’s 30% commission on purchases “makes it impossible” to monetise the service.

As reported by The Verge, Microsoft provided statements to the UK’s Competition and Markets Authority (CMA), as part of the regulator’s investigation into market dominance in mobile browsers and cloud gaming service distribution. 

As part of these investigations, Microsoft has issued statements criticising technical requirements and App Store guidelines.

“In relation to the market for distribution of web apps on iOS devices, Microsoft reiterates its prior comments regarding the inferior functionality of, and the difficulties end users have discovering and accessing, web apps (compared to native iOS apps),” read a statement. 

“That inferior functionality is in large part the result of Apple’s WebKit requirement and the fact that Apple does not permit web apps to access iOS and device hardware features and functionality that are accessible to native apps.”

“Result of a lack of competition”

On the App Store commission, Microsoft said the fee is “set at a level that is neither economically sustainable nor justifiable”.

“The 30% commission fee makes it impossible for Microsoft to effectively monetise its cloud gaming service offering, given that Guideline 3.1.3(b) prevents different content, subscriptions or features (including consumables in multiplatform games) being offered to iOS users (as compared to the content, subscriptions and features offered on other platforms),” read the statement.

“As observed by the CMA in its Mobile Ecosystem market study, the 30% fee imposed by Apple on IAPs is the result of a lack of competition in the distribution of native iOS apps.”

Commercial disputes

In response, Apple has submitted its own statements to the CMA’s investigation. It said that the primary concern identified by the CMA “is not a technical issue, but instead a commercial one – the requirement to use Apple’s in-app payment (“IAP”) functionality for the purchase of digital goods and services”.

It has also noted changes already made to its App Store guidelines for cloud gaming apps.

“This issue is notably raised by very large developers, some of which are well known for their commercial disputes with Apple more generally,” it said.

It added: “Apple applies the IAP requirement uniformly to all apps for any purchases of digital goods and services. There is no basis for treating cloud gaming apps differently from other apps, even if the developer of the cloud gaming app sources some or all of the games from other developers. 

“As Apple has explained, it is a long-standing principle of the App Store, and Apple’s relationship with developers, that developers are responsible for the content and features of their apps even if third parties contribute to that content.”