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Microsoft's beef with Apple over SkyDrive for iOS is justified

Apple and Microsoft must have missed sniping at each other, because this is petty.

By Andy Patrizio on Wed, 12/12/12 - 9:41am.

It's been a while since Apple and Microsoft took cheap shots at each other. I guess they got bored. One news outlet reports Apple is being difficult about approving the newest version of SkyDrive for iOS.

The Next Web reports that the two are at loggerheads over a new version of SkyDrive, which has a paid storage option because Microsoft doesn’t pay Apple a 30% cut of subscription revenue generated by paid storage services.

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A main sticking point is that Microsoft does not want to pay Apple the 30% cut, which runs in perpetuity regardless of whether users continue to use an iOS device or not, because the billing is done through their Apple account.

So if a user signed up for the enhanced-capacity drive on their iOS device and then moved to a non-iOS phone (say, a Windows Phone), Apple would still collect 30% of their fee for storage even though they aren’t using the iOS device any more. Microsoft is understandably not keen on this.

The problem is not limited to just SkyDrive. AllThingsD reports that this fee is also applied to Office 365 subscriptions sold through Microsoft Office for iOS, which Microsoft has all but acknowledged will be launched sometime next year.

A spokesperson for Microsoft responded to a query with this comment:

"Similar to the experiences of some other companies, we are experiencing a delay in approval of our updated SkyDrive for iOS. We are in contact with Apple regarding the matter and hope to come to a resolution. We will provide additional information as it becomes available."

Apple, as usual, isn’t talking.

This problem could easily spread to other apps. Third-party developers that use SkyDrive would also be hit with the 30% fee, and they aren’t going to like that perpetual fee, either.

How this plays out will be very interesting. Microsoft could practice what it preaches and offer policies for the Windows Store similar to what it wants from Apple. This would be a key point of differentiation and potentially competitive.

If Apple continues to play hardball and extends the same courtesy to DropBox and other cloud storage apps, Apple could be the one shut out and shunned. Will it happen? Who knows? Tim Cook does not strike me as unreasonable, and now that this is out and in the media, the pressure may come down on Apple.

Now the real test for Microsoft will be how it behaves when the shoe is on the other foot.