Microsoft, Apple at odds over iOS payment requirements
Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) have locked horns over submission and payment guidelines for the App Store pertaining to Microsoft's SkyDrive app for the iOS platform. Microsoft has reportedly not been allowed to update its SkyDrive iOS app since the company introduced the ability to buy additional storage in June. Microsoft currently offers a free tier that gives 7GB of storage for SkyDrive.
At the root of the matter was Microsoft's unwillingness to pay Apple the 30 percent cut of subscription revenue for users signing up for additional storage capacity. As such, a new version of Microsoft's SkyDrive app that resolves a crashing bug was facing a delay in being approved. This delay has been officially confirmed by Microsoft, though the company would not go into specifics.
While some may argue that Microsoft is wrong to expect Apple to yield, it must be remembered that the SkyDrive online storage service is available on multiple platforms. Being forced to pay a 30 percent tax in return for a hosted-on-Microsoft storage service, regardless of whether a user continues to use the iOS app or not, does come across as overbearing and excessive.
Microsoft has offered to remove all subscription options from its iOS app to get it updated, though the offer was rebuffed. The situation seems to be an intractable one, with The Next Web summing it up this way: "If a service has a subscription option, it seems, and it is not listed in the iOS store, the application cannot, and will not be allowed."