Apple and Microsoft argue about the future of cloud gaming on iOS: 30% commission is the main obstacle

Apple recently relaxed the rules for cloud gaming services on the App Store, such as Xbox Cloud Gaming and GeForce Now. However, Microsoft and Nvidia have yet to release apps for iOS. In a statement to the UK’s Competition and Markets Authority (CMA), Microsoft explains why Apple’s changes are unacceptable to them.

Image Source: Apple

Microsoft has openly accused Apple of blocking the launch of the native Xbox Cloud Gaming app on iOS, mainly due to the 30% fee for in-app purchases (IAP) and strict content requirements. The company claims that these conditions do not allow it to effectively monetize the service and force developers of third-party games to remake them to meet the requirements of the App Store, writes The Verge.

In its submissions to the UK Competition and Markets Authority (CMA), Microsoft detailed the problems it faces when trying to run a full Xbox Cloud Gaming app on iPhone and iPad. The company points to a number of Apple rules that, in its opinion, limit the capabilities of cloud gaming services.

The key issue is Apple’s requirement that all features and content available on other platforms must be available in the iOS app via IAP. Microsoft believes the 30% fee Apple charges for in-app purchases makes the service uneconomical. Additionally, since developers have to remake games to comply with IAP requirements, this increases costs and complicates the entire process.

Apple, in turn, insists that it supports cloud gaming through web applications, citing the example of Xbox Cloud Gaming, which it says is used by more than 20 million people. The company also claims that developers generally have no problems with IAP requirements, citing the example of Antstream, a service that successfully launched on the App Store and offers more than 1,300 retro games.

The CMA is continuing its investigation, which began last year. The regulator is considering various options to solve the problem, including the possibility of requiring Apple to allow cloud services to use their own payment systems or launching a “reader mode” for cloud games without the possibility of in-app purchases. The CMA plans to publish a preliminary report in November and make a final decision early next year.