Report: Microsoft balks at Apple fees, jeopardizing SkyDrive for iOS

Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are reportedly sparring over revenues derived from the iOS version of Microsoft's SkyDrive cloud storage and file sharing application, leaving proposed updates to the service in limbo.

Citing sources close to Microsoft, The Next Web reports the company ran afoul of Apple's App Store regulations by enabling SkyDrive for iOS users to sign up for 7GB of free storage space, with the option to increase their allotment via paid subscription. Because Microsoft has not agreed to award Apple a 30 percent share of SkyDrive revenues, a percentage consistent with other premium App Store subscriptions, Apple has blocked subsequent SkyDrive updates, including a critical bug fix designed to keep the app from crashing.

The Next Web notes Microsoft is declining to share SkyDrive revenues because subscriptions purchased through the App Store will continue awarding Apple its 30 percent cut in perpetuity, even if the subscriber moves to a Windows Phone or Android device or even migrates from a mobile device to desktop access. The report adds that Microsoft has offered to remove the subscription option for Skydrive for iOS, eliminating all revenue-generating features from the app, but Apple continues balking at the proposal.

Microsoft has not released a SkyDrive for iOS update since rolling out version 2.1 on June 1, 2012. Neither Microsoft nor Apple has responded to requests for comment.

The Next Web adds that the SkyDrive for iOS impasse is also affecting third-party developers who've integrated SkyDrive functionality into their applications. "Our iOS app Files Pro includes support for SkyDrive using the official Live SDK. A few days ago our last update was rejected by the Apple review team because of the presence of the 'Sign Up' button in the Live login authorization page," explained developer Olive Toast Software on Microsoft's Live Developer Forums. "According to Apple the presence of this button violates their guideline 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."

Other developers are reporting similar issues. "My iOS app CloudMusic for SkyDriv" uses LiveConnect SDK for iOS to stream user's audio content to iDevice," said a developer using the Microsoft Live Connect Developer Center username Jacky.Tu. "I have a 'Sign In' button that invokes LiveConnectClient 'login' method which shows Windows Live sign-in page in UIWebView.  The app was rejected by Apple review team saying that 'the log in interface must be native and not a link or a web view.'"

A Microsoft staffer responded to Jacky.Tu's post on Oct. 25, stating "Microsoft is in active discussion with Apple on this issue.  However, there is no ETA on the resolution timeline at this point." Microsoft has not updated the thread since, despite another developer indicating Apple rejected its SkyDrive-enabled application for the same reason.

For more:
- read this Next Web article

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