Microsoft has launched a scathing attack on Apple’s practice of charging a 30% commission on in-app purchases, describing it as uneconomical and unreasonable. The批评 came to light earlier today when the UK’s Competition and Markets Authority (CMA) published responses from various technology companies regarding its investigation into the supply of mobile browsers and cloud gaming markets in the UK.
Apple has long defended its 30% cut from apps and in-app purchases by arguing that it needs to host infrastructure and make developers’ apps more discoverable. However, Microsoft has refuted these claims, stating that Apple contributes nothing to the purchase, discoverability, or accessibility of in-app purchases.
Microsoft’s submission to the CMA highlights that Apple’s in-app purchase fee is neither economical nor reasonable. According to Apple’s rules, app developers are not allowed to charge iPhone users more to cover this fee, making it impossible to monetize cloud gaming services on iOS.
The company cited a mobile ecosystems market study conducted by the CMA (page 82), which found that Apple’s 30% fee is a result of the lack of competition in the distribution of native iOS apps. In most markets, Apple does not allow sideloading of apps or the installation of apps from third-party app stores. This stands in stark contrast to Google, which offers Android users significant freedom, such as allowing third-party app stores and sideloading.
Microsoft did not mention any issues with cloud gaming services on the Android platform, but as previously stated, the company has more operational flexibility on that platform.
Apple’s Defense and Microsoft’s Counterarguments
Apple has consistently argued that its 30% commission is necessary to maintain the App Store’s infrastructure and to ensure that developers’ apps are easily discoverable. However, Microsoft’s response challenges these claims by stating that Apple’s contributions to the in-app purchase process are negligible.
Microsoft’s argument is further supported by the CMA’s findings that the lack of competition in the distribution of native iOS apps is a significant factor in Apple’s ability to charge such a high commission. The company points out that this creates an uneven playing field for developers and consumers alike.
The Impact on Cloud Gaming Services
One of the key issues raised by Microsoft is the impact of Apple’s policy on cloud gaming services. With Apple’s rules preventing developers from charging iPhone users more to cover the 30% fee, it becomes nearly impossible for cloud gaming services to monetize on the iOS platform. This has significant implications for the growth and development of cloud gaming, as well as for the broader gaming industry.
The Regulatory Landscape
The CMA’s investigation is part of a broader regulatory scrutiny of technology companies and their market practices. The authority’s findings and recommendations could have far-reaching implications for the tech industry, particularly in terms of how app stores operate and the fees they charge.
The next deadline for the investigation is in November, when the CMA will publish an interim decision report. The final report is scheduled to be released in March 2025, by which time interested parties will have an opportunity to respond to the interim decision report.
Conclusion
Microsoft’s criticism of Apple’s 30% in-app purchase fee highlights the ongoing tensions between major tech companies over market practices. As the CMA continues its investigation, the outcome could shape the future of app store economics and the broader digital economy. With the final report due in 2025, all eyes will be on the CMA’s recommendations and their potential impact on the tech industry.
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