Apple and Microsoft reportedly fighting over revenue sharing, SkyDrive app caught in the crossfire

Apple and Microsoft reportedly fighting over revenue sharing, SkyDrive app caught in the crossfire

Apple and Microsoft are reportedly wrestling over Apple’s 30% cut of items sold in the App Store, specifically SkyDrive subscription revenue for the SkyDrive app. The SkyDrive app was intended to not only allow users to view and open their files, but to upgrade their storage though the iOS app. According to the App Store rules, however, Apple's entitled to a 30% cut of any in-app purchases. According to Alex Wilhelm of The Next Web, however, it's gotten even more complicated:

Microsoft has persisted in trying to work out a compromise with Apple, but has thus far failed to come to an agreement. The company offered to remove all subscription options from its application, leaving it a non-revenue generating experience on iOS. The offer was rebuffed.

At issue could be one thing: the SkyDrive app has a “Sign Up” button that takes the user to a web page where they can purchase a subscription. This is against Apple’s policies, and there have been problems with apps doing this before. When Apple first implemented these rules, there was an issue with the Kindle app linking back to Amazon so that people could purchase books outside of Apple’s system. Apple doesn’t have a problem if your content comes from outside of its ecosystem, you just can’t directly link to said content in any fashion, which is what Microsoft is doing with the SkyDrive app.

This is also a issue for developers who integrate with SkyDrive. If their apps link to the SkyDrive sign-up, then their future updates will also be rejected, leaving their users out in the cold.

Apple's policy feels like it was originally designed to stop dishonest developers from abusing Apple's support of free apps by switching all payments to post-purchase up-sells. However, as time goes on its increasingly obvious that larger vendors like Microsoft, Amazon, and others should fall into a different category.

Hopefully for SkyDrive users, Apple and Microsoft figure this out.

Source: The Next Web

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Joseph Keller

News Writer for Mobile Nations. Fascinated by the ways that technology connects us.

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