Microsoft Slams Apple's 30% App Store Fee as "Unsustainable and Unjustified"
Microsoft Slams Apple's 30% App Store Fee as "Unsustainable and Unjustified"
Microsoft Slams Apple's 30% App Store Fee as "Unsustainable and Unjustified"
The Competition and Markets Authority (CMA) in the UK today published responses from tech companies to its market study into mobile browsers and cloud gaming in the UK. Among the responses, Microsoft criticized Apple's 30% commission on in-app purchases.
Apple has long defended its 30% cut from apps and in-app purchases, arguing that it is needed to maintain its infrastructure and make it easier for developers' apps to be discovered. However, Microsoft has taken a critical stance. Microsoft stated that Apple makes no contribution to the purchase volume, discoverability, or accessibility of apps in terms of in-app purchases. The company argued that Apple's in-app purchase fee is "both economically unsustainable and unjustified."
Microsoft claimed that its cloud gaming service cannot be profitable on iOS because Apple's rules prohibit charging iPhone users additional fees to offset the 30% cut.
IT Home notes that Microsoft also cited findings from the CMA's market study on the mobile ecosystem (page 82), which found that Apple's 30% fee is due to the lack of competition in native iOS app distribution. In most markets, Apple does not allow sideloading or installing apps from third-party app stores. This contrasts sharply with Google's approach, which allows users to utilize third-party app stores and sideload apps.
The next deadline for the investigation will be in November, when the CMA will publish a provisional findings report. The final report will be published in March 2025, allowing parties to respond to the provisional findings report before that date.
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