Microsoft Faces Off With Apple Over 30% Cut on SkyDrive
Microsoft is reportedly in a 'Cold War' with Apple over the future of SkyDrive on iOS, reports TNW.
The site has learned that Microsoft has a new version of the app that fixes a crashing bug ready to go but cannot get it approved due to Apple's demand that they receive a 30% cut of SkyDrive subscription revenue when users add additional storage.
Microsoft does not appear keen to pay Apple the 30% cut, as it lasts in perpetuity, regardless of whether a user continues to use an iOS device or not, as the billing is through their Apple account. Therefore, if a user signed up for a few additional gigabytes on their iOS device, and then moved to Android or Windows Phone or not phone at all, for the length of their account, Apple would collect 30% of their fee for storage. This hasn’t sat well with Microsoft.
Even worse, when Microsoft offered to remove all subscription options from its application, Apple reportedly refused the offer. It appears as though the company is saying that if you're app connects to a subscription service that you must offer it via in-app purchase.