Microsoft has accused Apple of blocking cloud gaming on iOS. The tech giant claims that changes to the App Store are not sufficient to launch a native Xbox Cloud Gaming app. Microsoft warns that Apple’s requirements prevent developers from earning revenue from cloud gaming.
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In a letter to the UK’s Competition and Markets Authority (CMA), Microsoft criticized the App Store’s policies. The tech company says that while changes made by Apple in early 2024 have lifted some restrictions on cloud gaming apps, they are still not enough.
“Microsoft notes that despite the changes Apple made to the Guidelines between January and March 2024, many still block native cloud gaming apps,” the letter states. “These guidelines cannot be met by apps in the game catalog that embed third-party games due to both technical and economic reasons.”
In the letter, Microsoft highlights two specific App Store guidelines. The first, 3.1.1, prohibits native apps from including external links for purchasing products or services. While the Digital Markets Act allows third-party stores and alternative payment methods, it applies only in Europe. Therefore, users in the United Kingdom and other regions must follow the official rules.
Since the native Xbox Cloud Gaming app must process all transactions through Apple’s system, Microsoft would be required to pay the 30% fee. Microsoft describes this fee as “set at a level that is not economically sustainable or justifiable.”
Apple Has Not Done Enough to Open the App Store, Microsoft Says
One major issue in recent years has been the commission Apple charges on App Store transactions. Users outside the European Economic Area cannot benefit from the Digital Markets Act (DMA) and access third-party stores or Fortnite. Microsoft and other companies are pushing for changes and are seeking support from regulators.
Regarding cloud gaming, Apple suggests that developers can use a web app instead. In a letter to the CMA, Apple stated that it has “consistently supported gaming in all its forms,” and as a result, gaming has flourished on iOS.
“Cloud gaming, like other gaming apps, benefits from Apple’s investments in hardware and software, as well as its efforts to ensure that the iOS platform is an attractive home for gaming apps, whether as a native iOS app or a web app,” Apple stated.
However, Microsoft argues that web apps lack the benefits of native apps. Due to the WebKit requirement, web apps have reduced functionality. Microsoft states, “Due to the discoverability and accessibility limitations of web apps, the prohibition on alternative iOS app stores poses a major obstacle to their adoption.”The correspondence from Microsoft and Apple is part of the CMA’s investigation into mobile browsers and cloud gaming services through apps.
