Microsoft, Apple unable to come to agreement over SkyDrive app revenue

The SkyDrive app may not have much of a future on iOS according to a new report detailing Microsoft's unwillingness to share revenue with Apple.

Microsoft recently introduced the ability to purchase more cloud storage for SkyDrive in-app, and has balked at sharing that revenue with Apple.

The App Store's clearly explained policy dictates Apple will receive 30 percent of all app sales, as well as 30 percent of all revenue generated by in-app purchases.

Apple would continue to earn 30 percent of the SkyDrive subscription fees even if a consumer no longer used an iOS device, which caused Microsoft to rethink its stance of profit-sharing.

As a result, Apple is now blocking Microsoft's latest update to SkyDrive, despite repeated tries from Microsoft to work out some kind of arrangement.

Third-party problems

Sources familiar with the issue told The Next Web Microsoft has been trying to work out a compromise with Apple, but hasn't had much success.

Microsoft reportedly even said it would remove all subscription options from the app, and thus removing the SkyDrive app's ability to generate revenue, but Apple rebuffed the offer.

Since neither party has been able to resolve the issue, an update fixing a bug that crashes SkyDrive on iOS hasn't been pushed to consumers.

Even more disconcerting are the ramifications being felt by developers who have third-party apps that work in conjunction with SkyDrive.

Several of the apps in question require users to sign in to SkyDrive, but Apple's review team has denied such access claiming "the log in interface must be native and not a link or a web view."

In other words, since users won't have to log-in through Apple, and would instead be able to log-in through Microsoft, the apps are being cut off until Microsoft agrees to pay.

The whole story?

Though The Next Web's sources indicated the primary issue between Apple and Microsoft lied within the SkyDrive commissions, there may be another twist.

According to AllThingsD, the squeeze is being put on SkyDrive due to Microsoft wanting to renegotiate the 70/30 revenue split with Apple over Office 365 subscriptions.

The sources close to the matter didn't divulge just what kind of split Microsoft was instead seeking, but did say Apple reticent to change its policies, even for a massive money maker like Office.

Office Mobile for iOS isn't due to arrive until sometime next year, which gives Microsoft some time to continue negotiations with Apple, even if those talks come at the cost of SkyDrive's users.

Apple's policies shouldn't be new information for anyone involved in developing apps for iOS, so it will be interesting to see just how much flexibility will be given to Microsoft as the discussions progress.

TechRadar has reached out to Microsoft for comment, and will update this article when and if they respond.