Microsoft Criticizes Apple's EU App Store Changes; Details

Microsoft has expressed its reservations regarding Apple's planned App Store alterations in compliance with the European Union's (EU) tech regulations, characterizing them as "a step in the wrong direction." The critique follows similar disapproval from Epic Games and Spotify regarding Apple's approach to the EU's regulatory framework.

Apple's new strategy involves introducing a Core Technology Fee for apps operating on third-party app stores within the EU. Developers using these third-party stores would be required to pay €0.50 for each annual app installation exceeding 1 million downloads. Additionally, Apple will maintain a 17 percent commission from developers opting for third-party payment processors.

“Apple’s new policy is a step in the wrong direction,” says Xbox president Sarah Bond in a post on X. “We hope they listen to feedback on their proposed plan and work towards a more inclusive future for all.”

Microsoft's commentary comes at a crucial juncture when it is actively engaged in expanding its Xbox platform and hardware initiatives. Simultaneously, the company is developing its own Xbox mobile store, positioning itself as an alternative to the dominant mobile gaming stores of Apple and Google. This store, slated for a potential launch this year, will feature content from Activision Blizzard, including popular games like Call of Duty: Mobile and Candy Crush Saga.

Microsoft Gaming CEO Phil Spencer had previously identified the EU's Digital Markets Act as a significant opportunity for the Xbox mobile store, anticipating its potential success.

Epic Games' CEO Tim Sweeney has strongly criticized Apple's App Store changes, labeling them as "hot garbage" and accusing Apple of undermining Europe's new Digital Markets Act. Apple’s plan to thwart Europe’s new Digital Markets Act law is a devious new instance of Malicious Compliance.” Sweeney, known for his legal battles against Apple's App Store policies, has been vocal in opposing Apple's approach.

Spotify has also condemned Apple's new App Store fee, describing it as "extortion," and has called upon EU regulators to take action. The European Commission has pledged to respond to Apple's changes when the regulations officially take effect in March, promising robust measures if the proposed solutions fall short.

Microsoft's disapproval of Apple's policy changes raises concerns about the future of a potential Xbox Cloud Gaming app on iOS. Apple recently allowed cloud gaming services on the App Store while unveiling its updated policies for EU markets. “Developers can now submit a single app with the capability to stream all of the games offered in their catalog,” Apple wrote in a blog post.

The reactions of Nvidia, Microsoft, and other cloud gaming providers to Apple's acceptance of cloud gaming services remain pending, leaving uncertainties about their willingness to publish iOS apps for their services.