View this article at: http://www.macnn.com/articles/12/12/11/apple.claiming.revenue.cut.on.subscriptions.even.when.off.ios/
Tuesday, Dec 11, 2012 10:05am
Apple, Microsoft warring over SkyDrive iOS app, sources say
Apple and Microsoft are in a fight over the SkyDrive app on the iOS App Store, according to sources said to be close to the latter party. Recently, Microsoft introduced the ability for SkyDrive subscribers to buy extra storage space. In response, though, Apple has reportedly started blocking updates to the app, even though code that's ready to go includes an important crash fix.

The dispute arises from the fact that Apple is asking for a 30 percent cut of subscription purchases in perpetuity, even though a person might later stop using SkyDrive on an iOS device. If a person keeps using their account, in other words, Apple is said to be asking for 30 percent of the storage fee, since the billing was originally handled through an iTunes account.

Microsoft is said to be trying to negotiate some sort of compromise with Apple, but without any success so far. This includes even offering to strip out all subscription options from the app, but Apple has rejected the idea. Apple is moreover said to be locking out third-party apps that connect with SkyDrive, like Files Pro, which is being prevented from updating because of a "Sign Up" button in the Live login page. The official reason for the rejection is that "Apps that link to external mechanisms for purchases or subscriptions to be used in the app, such as a 'buy' button that goes to a web site to purchase a digital book, will be rejected." Another title, CloudMusic for SkyDrive, has been frozen because "the log in interface must be native and not a link or a web view," although the method used is believed to be the only way to sign into SkyDrive.

The sources elaborate that even if Microsoft pulled the SkyDrive app entirely, issues would remain, since Apple would still see subscriptions as dodging the in-app scheme from which it collects revenue.