Microsoft, Apple Fight over 30% In-App Fee

Apple wants to charge people using SkyDrive and buying additional storage space

By on December 11th, 2012 13:17 GMT

With so many rumors swirling around and claiming that Microsoft is planning to debut an iOS version of its popular Office productivity suite, it was only a matter of time before reports hinting at a potential Microsoft – Apple clash came out.

The Next Web writes that the two technology giants are now fighting over the 30 percent fee that Apple has already adopted for the App Store software.

It all started because of Microsoft’s SkyDrive software solution that’s already available on a number of platforms, including Apple’s very own iOS.

Already included in the App Store, SkyDrive allows users to purchase additional storage space and host their files in the cloud. Apple, however, has blocked Microsoft from updating its application because it doesn’t pay the 30 percent fee we’ve told you about.

With a new version supposed to fix a bug that crashed the app in the pipeline, Microsoft is looking into ways to reach an agreement on the 30 percent cut with Apple. The Redmond-based software giant isn’t willing to pay the money, so it offered to remove the subscription options from its SkyDrive iOS app.

Apple refused, even though Microsoft has criticized the fruit-named company for trying to charge users even if they stop using iOS devices.

Assuming that you buy additional SkyDrive storage space using the iOS app, but you then move to Android or Windows, Apple still gets a 30 percent cut because the transaction is done through your Apple account. Which isn’t quite alright, Microsoft said.

And the dispute doesn’t end here. Apple is apparently blocking developers from publishing iOS apps that connect to a SkyDrive account, just because Microsoft doesn’t agree to pay the aforementioned fee.

Some sources familiar with the matter have hinted that Apple’s decision to stick to the 30 percent cut may actually be a move supposed to delay Microsoft’s plans for an Office for iOS release. Microsoft is expected to launch its world-renowned productivity suite for iOS platforms in just a few months, and such a move doesn’t sit well with Apple.

The Cupertino-based technology company has high hopes that iWork could challenge MS Office’s leading position in a couple of years, but with a dedicated iOS version of Microsoft’s software, chances to see this happening are significantly lower.

It remains to be seen, however, if Apple and Microsoft manage to reach an agreement on this, but as far as Microsoft is concerned, having a 30 percent cut for every sold license is a thing no software giant would agree with.

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