In a bid to appease lawmakers and regulators, Microsoft outlines 11 app store principles, including equal treatment and allowing third-party payment processing
Microsoft hints it will open up Xbox store, changing its entire business model The Economic Times : Microsoft unveils new app store guidelines as it woos regulators on deal Financial Times : Microsoft pledges to play fair on games as it tries to sell Activision deal Thomas Claburn / The Register : Microsoft offers ‘open’ app store to draw regulators away from Activision takeover Diane Bartz / Reuters : Microsoft announces app store principles as it woos regulators on deal Todd Bishop / GeekWire : Microsoft looks to preempt Activision-Blizzard objections with new app store principles Kris Holt / Engadget : Microsoft promises to keep Call of Duty on PlayStation Tweets: Brad Smith / @bradsmi : Governments around the world are moving forward with laws to promote competition in app markets. As we move ahead with the acquisition of Activision Blizzard, we're announcing new Open App Store principles to adapt to emerging regulations. https://blogs.microsoft.com/ ... @msftissues : Today we announced new Open App Store principles for the Microsoft Store on Windows and our next-generation marketplaces being built for games. Read more from @BradSmi on our process and how these align with global legislation: https://blogs.microsoft.com/ ... Jason Stettner / @skycaptin5 : Xbox really doesn't take any advantages, quite a surprise. I'm assuming this is a shot at Apple's store? Call of Duty and other Activision Blizzard titles will remain multiplatform. https://blogs.microsoft.com/ ... https://twitter.com/... @carnage4life : The idea that Microsoft owes Apple 30% of the revenue from any copy of Office sold on an iOS device puts into sharp relief how ridiculous Apple's App Store rake is. @carnage4life : @stevesi They can stop having an iOS app? Then do what, move to being web-only like OnlyFans? Your arguments are even worse than Apple's. Casey Liss / @caseyliss : Wait, so, Microsoft really are the good ones now, huh? 😳 What does that make Apple, then? 😱 Excited to discuss this on @atpfm tonight. https://twitter.com/... Brad Sams / @bdsams : Also worth pointing out that the app store on Windows isn't exactly a huge success - so these changes, while good, aren't going to change much for the industry. Steven Sinofsky / @stevesi : @Carnage4Life Match must think it provides value. I get that in this climate some might call it a tax but they can easily choose to have people use the web site and spend that money on using other means to drive people there. It also makes sense the biggest Cos are the biggest numbers. Canadian Guy Eh / @canadianguyehh : “we want more titles from Activision Blizzard to be like Minecraft. Increasing innovation and bringing it to more platforms then ever before” Yet again, more evidence https://twitter.com/... Steven Sinofsky / @stevesi : @Carnage4Life They can always stop. Other companies do. They just want to pay less or nothing which I get and asking the government for help is one approach. I feel like I accounted for that in saying how some might call it a tax. @vicious696 : if I am reading this correctly existing Activison/Blizzard IP will continue to live on Playstation and Nintendo beyond current agreements This is overall good for gaming and highlights the change of bringing titles to as many platforms as possible https://blogs.microsoft.com/ ... Hunter / @nextgenplayer : Is everyone excited that Activision will keep bringing games to PlayStation like Call of Duty? 🤔🤔🤔 Probably other series like Crash Bandicoot, Spyro and Diablo will come to PS5 too 😳🔥 https://blogs.microsoft.com/ ... https://twitter.com/... Daniel Ahmad / @zhugeex : Microsoft needs regulatory approval before it can fully acquire Activision Blizzard, and this time there are larger anti-trust concerns. So that's why Microsoft is releasing messaging around exclusivity and app store openness to help smooth the process. https://twitter.com/... Steven Sinofsky / @stevesi : @Carnage4Life No they can stop signing people up on the app. To sign up you use a browser. The fact that they won't do this makes a compelling argument for the value provided by using the store to acquire customers directly. Just like having to pay retailers for carrying a product. Sean Hollister / @starfire2258 : Kudos to Microsoft for figuring out a way to show up Apple and appease gamers and regulators all at the same time — while risking very little of its own profits. Remember: The Windows app store is barely a thing, and it doesn't have a foothold in phones. https://twitter.com/... Tom Warren / @tomwarren : there are some who still think Microsoft isn't being clear here with CoD and other Activision games staying on PlayStation. This interview with @CNBC makes it 100% clear. Microsoft wants more games like Minecraft that are available on multiple platforms https://www.cnbc.com/... https://twitter.com/... https://twitter.com/... @carnage4life : @stevesi I love how you believe you know better than Match about their business given they've lobbied extensively against the App Store tax in several jurisdictions including getting a law passed in Netherlands that Apple is currently flouting and getting fined €5M weekly for. 🤷🏾♂ ️ Charlie Demerjian / @cdemerjian : @Carnage4Life @soft_fox_lad Given the volume that the Microsoft store processes, this could wipe $8 off their income in just a year. Randy Pitchford / @duvalmagic : Microsoft has finally openly called the shot. I have been anticipating this since the original Xbox was announced. We'll see if their declaration of intent will help platforms become as comfortable with Xbox as a gaming “OS” as they are with Windows: https://blogs.microsoft.com/ ... https://twitter.com/... @destinlegarie : This CNBC interview with Brad Smits is eye-opening. The real strategy is to get an “App Store” that is usable on all platforms including competitors. Mobile, consoles & PCs. If only they had something that's sort of doing that already... https://www.cnbc.com/... Casey Newton / @caseynewton : I wrote about Microsoft announcing some fairly new generous new platform principles to generate goodwill for its Activision acquisition ... and then exempting the Xbox, at least for now https://www.platformer.news/ ... https://twitter.com/... Eric Seufert / @eric_seufert : This is a brilliant, preemptive regulatory appeasement play by Microsoft $MSFT that will hopefully drag Apple and Google along with it. Note that many of the Open App Store principles Microsoft articulates are taken directly from the Open App Markets Act https://www.axios.com/... @klobrille : Xbox has *a lot* of communications work ahead of them, in particular with their own Xbox fanbase. From a business standpoint, the decision absolutely makes sense. At the same time, I understand why Xbox fans can not quite understand the strategy here. https://blogs.microsoft.com/ ... Eamon Javers / @eamonjavers : Here's my full interview with Microsoft president Brad Smith this morning. Toward the end, you can see how he answers — or doesn't answer! — the question of whether or not he wants to buy @Mandiant .:https://www.cnbc.com/... @alex : damn, this is actually a pretty good list, $MSFT https://blogs.microsoft.com/ ... @destinlegarie : So Call of Duty & all Acti Blizz games are staying multi-platform. Xbox, PS, even Nintendo. Fear of consolidation or not, I think this deal is 100% going though. Are you still worried about it or is there some chill on Twitter with this update? https://blogs.microsoft.com/ ... https://twitter.com/... Steve Troughton-Smith / @stroughtonsmith : Microsoft is going to end up defining the boundaries of the App Store model, because Apple abdicated responsibility and decided to leave it up to legislators 🤦♂️ https://twitter.com/... Spencer Dailey / @spencerdailey : You know what the real power move would be? Pre-announce an open 3rd-party app store for iOS in anticipation of rules being changed by regulators (anywhere in the world) https://twitter.com/... @carnage4life : Microsoft is playing the strategy credit game against Apple. The company would rather sacrifice its Windows Store cut than continue to live in a world where Apple takes a 30% cut of Office or XBox Games Pass sold on iOS. Apple looks like a greedy landlord https://www.washingtonpost.com/ ... @carnage4life : This is the same sort of strategy where Apple hijacked the ads business of social apps like Snapchat & Facebook under the guise of privacy. Smart business moves disguised as altruistic public gestures. Completely swallowed hook, lime & sinker by the tech press. Steven Sinofsky / @stevesi : @Carnage4Life If you have your own awareness, distribution, and acquisition channels then you don't use the store for that. That applies to a very small number of products/services. @carnage4life : @stevesi Apple makes the most money from companies that don't need their distribution. Match spends hundreds of millions paying Apple's tax and have been consistent that they don't benefit enough from Apple's “distribution” relative to the cost https://t.co/LEVoQAo54Z Brian Fagioli / @brianfagioli : @Techmeme @Cat_Zakrzewski Nobody uses the Microsoft Store tho. These principles are like a tree falling in a forest Steven Sinofsky / @stevesi : Microsoft announces new app store principles, aligning with Open App Markets Act // old enough to remember...never mind. https://www.washingtonpost.com/ ... Brad Smith / @bradsmi : Our mindset is clear - our goal as a company is to adapt to changing regulation rather than fight it. https://twitter.com/... Nick Statt / @nickstatt : Microsoft has again re-iterated its commitment to keep Call of Duty games on PlayStation, but seems to be going even further in this new post by saying it will do so “beyond the existing agreement and into the future.” https://blogs.microsoft.com/ ... https://twitter.com/... Daniel Ahmad / @zhugeex : My comments in a note to clients from last month. When it comes to existing AAA franchises from Activision Blizzard, the goal is to increase the value of Game Pass. They don't need to go fully exclusive to do that. https://t.co/2TvbdiQiRL Frank X. Shaw / @fxshaw : Microsoft announces new app store principles, front-running policymakers https://www.washingtonpost.com/ ... Geoff Keighley / @geoffkeighley : CALL OF DUTY will continue to be released on Xbox, PlayStation and potentially even Nintendo platforms after the close of the Xbox / Activision deal per a new blog post from Microsoft's Brad Smith: https://blogs.microsoft.com/ ... https://twitter.com/... Kif / @kifleswing : Microsoft needles Apple App Store, says its Windows and future gaming platform will be open to sideloading, alternative payments https://www.cnbc.com/... Brian Fung / @b_fung : This appears to be part of Microsoft's pitch to antitrust regulators as well as an effort to get ahead of projected legislation like the Open App Markets Act by @SenBlumenthal @MarshaBlackburn @SenAmyKlobuchar and others. Daniel Ahmad / @zhugeex : New Microsoft statement on app stores and Call of Duty on PlayStation https://t.co/VBbmscIJ6i https://t.co/tXwWto0HNg Brian Fung / @b_fung : Here are the key principles Microsoft is committing to. They are effective immediately on the Windows store, and a subset (1-7) will apply immediately to the Xbox store, with the rest coming later, @satyanadella and @bradsmi told reporters at Microsoft's DC office. https://twitter.com/... Brian Fung / @b_fung : NEW: Microsoft announces a series of 11 app store commitments it's making as it tries to persuade regulators to approve the Activision Blizzard deal, and as policymakers weigh new laws to force competition in app stores. More to come shortly but here's a quick breakdown. Jordan Novet / @jordannovet : with regulators eyeing Microsoft's Activision acquisition, Brad Smith is out with 11 new ‘Open App Store Principles.’ the first 7 apply to Xbox, and Brad Smith says Microsoft is ‘committed to closing the gap on the remaining principles over time’ https://www.cnbc.com/... Kellen Browning / @kellen_browning : “Microsoft on Wednesday kicked off a charm offensive in Washington to gain government approval” to buy Activision Blizzard, “saying it would not give preferential treatment to its own games in its app stores.” via @dmccabe and @ceciliakang https://www.nytimes.com/... Steve Kovach / @stevekovach : Microsoft tries to pre-convince regulators that its $69 billion Activision acquisition is gonna be just fine. A point-by-point rebuke of Apple and Google policies that regulators have been trying to rein in. https://www.cnbc.com/...
Context & Ripple Effects
Microsoft had already proposed developer choice of in-app payment systems as a model for app stores. The expanded 11-principle framework carries that posture into the Microsoft Store and planned gaming marketplaces while Microsoft seeks approval for its Activision Blizzard acquisition.
The commitments fit a broader regulator-facing “nice guy” strategy around the deal, including Microsoft’s pledge to keep Call of Duty available on PlayStation beyond existing agreements.
First-order effects
- Developers using the Microsoft Store and forthcoming gaming marketplaces are promised equal treatment and access to third-party payment processing.
- Microsoft gives lawmakers and regulators a public set of marketplace commitments to weigh alongside its proposed Activision Blizzard acquisition.
Second-order effects
- Third-party payment providers gain a route into Microsoft’s marketplaces, making payment choice a practical part of the company’s regulatory case rather than solely an app-store policy.
- PlayStation and other parties scrutinizing the acquisition gain two related benchmarks: Microsoft’s marketplace rules and its Call of Duty availability pledge.
Third-order effects
- If acquisition review increasingly turns on enforceable platform commitments, large game and app-store deals will be assessed not only by ownership of content but by the rules governing distribution, payments, and access.
- The direction is toward more contestable platform gatekeeping, with store operators using openness commitments to preserve room for expansion under regulatory scrutiny.
The trend: Platform owners are tying app-store openness and cross-platform access commitments to major acquisition approvals.