Microsoft has joined the chorus of criticism against Apple’s latest plan to comply with the European Union’s (EU) tech regulations. The focus of contention is Apple’s proposed Core Technology Fee for apps operating on third-party app stores in the EU. Under this plan, developers would be required to pay €0.50 for each annual app install after reaching 1 million downloads. Microsoft, through its Xbox president, Sarah Bond, expressed concerns, stating that Apple’s new policy represents “a step in the wrong direction.” Bond further urged Apple to listen to feedback and work toward a more inclusive future.
Microsoft’s apprehensions arise at a crucial time as the company has been working on developing its Xbox mobile store, designed to offer an alternative to the dominant app stores run by Apple and Google. This Xbox mobile store is expected to launch soon, and Microsoft’s concerns about Apple’s new policy could impact its strategies in this regard. Microsoft’s Gaming CEO, Phil Spencer, had previously viewed the EU’s Digital Markets Act as a significant opportunity for Microsoft, especially in the context of the company’s plans for a mobile Xbox store.
Apple’s new App Store policies have faced criticism from various quarters. Tim Sweeney, CEO of Epic Games, referred to them as “hot garbage,” while Spotify accused Apple of “extortion.” The key issue revolves around the additional charges imposed on developers using third-party app stores, with critics arguing that this move undermines competition and imposes unfair financial burdens on developers.
This development is particularly noteworthy as it comes amidst Apple’s recent acceptance of cloud gaming services on its App Store. Apple has allowed developers to submit a single app with the capability to stream all games offered in their catalog. The reaction of major players, including Microsoft, to Apple’s acceptance of cloud gaming services is being closely observed. While Microsoft has expressed concerns about Apple’s new policies, the response of other cloud gaming providers like Nvidia is yet to be seen. As these dynamics unfold, it remains to be seen how Apple’s changes will impact the relationships between major tech players and the broader app development community.