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Apple denied Microsoft request to bypass 30% commission for Office

The Epic Games v. Apple trial has revealed additional details about Apple's behind the scenes negotiations with companies like Microsoft, including a request to bypass App Store commissions.

An email thread from 2012 sheds light on Microsoft's launch of Office for iPad and Apple's reaction to the news. According to CNBC, Apple executives asked Microsoft if it wanted to participate in WWDC that year. Microsoft declined, citing that it wasn't ready for talk about its iPad plans.

The thread, which included App Store executives Phil Schiller and Eddy Cue, also detail some of Microsoft's requests. For one, Microsoft wanted Schiller and Cue to meet with its own executives like Kirk Koenigsbauer — a current Microsoft senior vice president. Apple's team said yes.

However, Microsoft also asked Apple to allow it to redirect users to its own website to collect purchases and bypass the App Store 30% commission. Schiller denied this request, stating in an email that "We run the store, we collect the revenue."

Other documents and communications revealed in the Epic v. Apple trial show that the two companies shared a friendly partnership over several years.

Apple, for example, appeared to be interested in convincing Epic Games to support its ARKit augmented reality platform. Emails between Epic executives in 2017 suggested that a meeting with Apple occurred to discuss using the iPhone's face tracking technology to create animated characters.

The ARKit discussions between the two companies continued into 2020. After Apple released the iPad Pro with LiDAR, for example, Cupertino executives offered Epic Games a meeting with Apple's ARKit team. It also dangled the possibility of Apple promoting Epic Games at WWDC that year.



22 Comments

Beats 4 Years · 3073 comments

All these emails reveal is that these are scumbag companies.

The last bit about promoting Epic reinforces what I said in another thread. Apple was VERY friendly to Epic and always promotes them at iPhone keynotes. Little did they know they were sleeping with the devil.

Apple should take gaming to first-party and take it VERY seriously so as*holes like these have less control over product damage. Removing Fortnite was petty and although it doesn’t affect us AI readers much it did affect iPhone users who did play the game hours a day. Apple should invest 5 billion into first-party studios and game engines as a platform security measure and ecosystem stickiness. Throw in a killer M1 Apple TV with first-party M1 games and these game studios will have less leverage against Apple.

Schiller denied this request, stating in an email that "We run the store, we collect the revenue."


Pretty much sums up the logic of this trial. 

22july2013 11 Years · 3736 comments

It's nice to see confirmation through this trial of information that we all expected to be true.

slurpy 15 Years · 5390 comments

Beats said:
All these emails reveal is that these are scumbag companies.

The last bit about promoting Epic reinforces what I said in another thread. Apple was VERY friendly to Epic and always promotes them at iPhone keynotes. Little did they know they were sleeping with the devil.

Apple should take gaming to first-party and take it VERY seriously so as*holes like these have less control over product damage. Removing Fortnite was petty and although it doesn’t affect us AI readers much it did affect iPhone users who did play the game hours a day. Apple should invest 5 billion into first-party studios and game engines as a platform security measure and ecosystem stickiness. Throw in a killer M1 Apple TV with first-party M1 games and these game studios will have less leverage against Apple.

Schiller denied this request, stating in an email that "We run the store, we collect the revenue."

Pretty much sums up the logic of this trial. 

Yep. Apple should create it's own game engine, just to take market share away from unreal and fuck over Epic. There's no reason why Apple can't, they can hire the best people to do this and give them a blank cheque. It's absolutely nauseating how Epic tried to weaponize it's 13yr old user base against Apple for PR purposes, and how they manufactured the whole controversy out of nothing. They don't give a shit about their users, and they opted to have the app pulled and to screw them over, instead of paying Apple the fair fee just like every single other developer. All this, just so they can monetize Apple's user base for free, and pocket 100% of fortnite micro transactions. This is what this entire shitty trial is based on. Sweeney admitted he would have accepted a special deal from Apple, proving that his "I'm doing this for the small devs!" was a complete and utter lie. 

Trey_Lance 3 Years · 98 comments

Microsoft is a trillion dollar
Company, why should Apple allow them to bypass the fee?

how about Microsoft let Apple sell iPhones in their stores too?

are these people all communists owned by China like Tim Weenie?

zeus423 19 Years · 272 comments

Microsoft is a trillion dollar
Company, why should Apple allow them to bypass the fee?

how about Microsoft let Apple sell iPhones in their stores too?

are these people all communists owned by China like Tim Weenie?

If Microsoft sold iPhones in their stores, then there would be a reason for people to go to a MS store. It would be a win for MS, not for Apple.