Microsoft outlines new app store rules in Activision acquisition quest – Orange County Register

By David McLaughlin and Dina Bass | Bloomberg

Microsoft Corporation started to take the case in Washington for mebuy ts from game giant Activision Blizzardintroduced new data collection, competition and payment policies for the Xbox and Windows software stores that it said address regulators’ larger concerns about rival app stores.

The company, which last month agreed to buy Santa Monica-based Activision for $69 billion, on Wednesday also pledged to resume production of Call of Duty games for Sony’s rival PlayStation console as soon as possible. even after the contract has ended.

“We want to make it clear to regulators and the public that if this acquisition goes through, they can count on Microsoft to adapt to the applicable rules and run our business. responsibly,” said Microsoft President and Vice President Brad Smith at a press event. “We’re more focused on adapting to regulation than fighting it.”

At the meeting, top Microsoft executives explained the company’s app store guidelines for the Microsoft and Xbox stores, where users can purchase personal computer software as well as PC and Xbox games. These include a promise not to use any non-public data from the app store to compete with apps created by rival developers, and to avoid “prioritizing our apps over others.” other applications unreasonably”.

Read more: US regulators target illegal and anti-competitive mergers

Microsoft also said it won’t require developers to use its payment system for in-app purchases, though that and several other rules won’t initially apply to the Xbox store. Microsoft says it plans to bring those rules to Xbox over time.

Both the app store guidelines and the Call of Duty announcement aim to go ahead scheduled regulatory oversight of the purchase of Activision, which would make Microsoft the number 3 global game company.

While Microsoft had previously said it would honor Activision’s dealings with Sony, the company on Wednesday extended that. Microsoft will offer popular games in addition to existing deals “so Sony fans can continue to enjoy the games they love. We’re also interested in taking similar steps to support Nintendo’s successful platform,” Smith wrote in a blog post after the event.

The event, which included CEO Satya Nadella and Sarah Bond, Xbox vice president, came as lawmakers considered a bill that would put limits on app stores and force them to allow users install external applications. Microsoft has been an outspoken critic of how Apple Inc. run its App Store.

“The open web happened, and then what happened? Nadella said. “We wanted to go back to where the web was open and there was a useful way for new platforms to come out.”

Microsoft has made changes to reduce the fees it charges on apps, and last year said that app makers can use external payment systems at no cost. But that rule doesn’t apply to video games, the Verge reported at the time. The company also released an earlier version of its app store rules for the Microsoft Store on Windows in 2020.

“We recognize that there will be more scrutiny of any major acquisition made by a major tech company,” Smith said. “So we really encourage us to move forward quickly, proactively and be very transparent about how we are going to manage this business.”

Microsoft and Apple have been engaged in a battle over the rules that govern video game sales on the iPhone maker’s popular App Store. Smith argued that regulators should take action, and the company sent an Xbox executive to testify on behalf of Epic Games Inc., maker of Fortnite, in its battle with Apple over store fees application. A trial court judge has ruled against Epic, who is appealing the decision.

Last month, Nadella flagged plans to acquire game maker Activision Blizzard as a way to avoid paying commissions on Apple’s App Store by drawing gamers directly to mobile games like Candy Crush. .

In 2020, Smith said some app stores create a much higher barrier to fair competition and access than Microsoft’s Windows did when it was found guilty of antitrust violations 20 years ago, and he shared his concerns with the antitrust subcommittee of the United States House of Representatives.

Those concerns centered on Microsoft’s internet-based game service, sold as part of an Xbox Game Pass subscription. An app that would allow users to pay a monthly fee to Microsoft and stream dozens of different titles from the cloud, aimed at gaming like what Netflix Inc. did for video content. But Microsoft was unable to launch the service as intended on iPads and iPhones because it failed to convince Apple to relax App Store rules banning all-in-one gaming services.

Finally, Apple tweaked the rules to allow Redmond, a Washington-based Microsoft, to sell game services in the cloud, but each game had to be downloaded separately, defeating the purpose of an all-in-one solution. both in one. Now, Microsoft is rolling out the service on Apple devices via the web, which is generally a much less seamless experience than an app would provide.