Yahoo News Microsoft takes swipe at Apple and Google with new app store rules
Microsoft (MSFT) is on a quest to ensure that its $68.7 billion acquisition of Activision Blizzard (ATVI) passes muster with regulators around the world. And it’s taking a swipe at rivals Apple (AAPL) and Google (GOOG, GOOGL) at the same time.
On Wednesday, Microsoft President Brad Smith laid out how the company will play nice with developers by choosing not to have a preference for its own apps in its Microsoft Store. What’s more, Smith said Microsoft will continue to make Activision Blizzard games available on rival gaming platforms.
“We have developed these principles in part to address Microsoft’s growing role and responsibility as we start the process of seeking regulatory approval in capitals around the world for our acquisition of Activision Blizzard,” Smith wrote.
But those principles aren’t just meant to woo the likes of the Federal Trade Commission, which is looking into Microsoft’s Activision Blizzard deal. They’re also meant to make developers view Microsoft as a kind of anti-Apple when it comes to things like app store policies and fees.
Developers have taken issue with Apple’s App Store policies for years, accusing the company’s approval processes of being opaque and claiming that its App Store fees drive up prices for consumers.
“Too much friction exists today between creators and gamers; app store policies and practices on mobile devices restrict what and how creators can offer games and what and how gamers can play them,” Smith said in his note.
Microsoft has been open about its distaste for Apple’s App Store rules in the past, sparring with the company over Apple’s refusal to let Microsoft add its game streaming Xbox Game Pass app to the App Store.
The Windows maker also cut fees on its Microsoft Store platform from 30% to 12% in April 2021, a move to put pressure on gaming platform Steam, as well as Apple and Google. All three companies charge developers a 30% fee on software sold through their digital storefronts.
Now Microsoft is taking aim at accusations by lawmakers that Apple and Google favor their own apps in their respective app stores.
Specifically, Smith says that Microsoft will agree to treat third-party apps the same as its own software offerings. To do that, the company will not rank Microsoft apps or Microsoft business partner apps higher than third-party apps in the Microsoft Store.
The move comes at a time when Congress is considering legislation that would prevent digital storefront owners from featuring their own first-party content over third-party sellers’ offerings.
Both Apple and Google have come out against the legislation, with Apple claiming the move would harm user privacy and security, and Google saying it would disrupt services that users rely on like Gmail and Google Maps.
But Microsoft, keen on currying favor with lawmakers, is seemingly aligning its new app store principals with the proposed legislation. The move could also win over prospective developers who are weary of Apple and Google’s store fees.
Smith says the Microsoft Store will not require developers to use Microsoft’s built-in payment options, and that Microsoft will not disadvantage developers that choose to use their own payment processing system.
As far as the actual Activision Blizzard deal goes, Microsoft says that it will continue to make games like “Call of Duty” available on rival Sony’s PlayStation console. Making “Call of Duty” exclusive to Microsoft’s Xbox or PCs would have been a major blow to Sony, as the military shooter franchise was one of its most played games in 2021.
Microsoft, however, says it will both honor existing contracts that put Activision Blizzard games on the PlayStation, and continue to do so when those contracts lapse. It also says it’s working with Nintendo to do the same.
From the looks of it, Microsoft is both eager to prove its willingness to play ball with regulators, while pointing out how much ground it’s given up to show how open its platforms are compared to its competitors’.
Still, given the current antitrust climate hanging over the tech industry, there’s no guarantee that these moves will ensure the Activision Blizzard deal goes through.
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