As Scrutiny of Activision Bid Intensifies, Microsoft Offers App ‘Principles’

Better to get out in front of an issue and meet it head-on than try to play catch-up later.

Microsoft, via a blog post Wednesday (Feb. 9), offered a set of new guidelines for app stores. It may be the case that the guidelines are a shot across the bow for other Big Tech names like Google and Apple, of course — but the intent seems to gain some approving nods from regulators as Microsoft’s $69 billion bid for Activision comes under the antitrust microscope.

According to the post from President and Vice Chair Brad Smith, the principles “will apply to the Microsoft Store on Windows and to the next-generation marketplaces we will build for games.” Here, we have an implicit acknowledgement of the company’s gaming strategy, which of course includes Activision.

The broad themes addressed by the principles address how developers would be able to interact with the company’s app store, and, critically, would not give its apps, or its partners apps, preference over other firms’ offerings.

In a direct nod to the issues of the day, developers would not have to utilize the tech giant’s payment system for transactions done through the app.

See also: Microsoft’s $70B Bid for Video Game Maker May Test Market Definitions

On one hand, Microsoft’s principles come at a time when the Open App Markets Act has been passed by the Senate Judiciary Committee. The Act mandates that app stores with more than 50 million users cannot, among other things, require developers to use the Big Tech payment system.  Microsoft is complying with the spirit of the (possible) law here.

“We will not disadvantage developers if they choose to use a payment processing system other than ours or if they offer different terms and conditions in other app stores,” one of the principles reads.

Another continues, “We will continue to enable developers to choose whether they want to deliver their apps for Windows though our app store, from someone else’s store, or ‘sideloaded’ directly from the internet.”

Beyond the aforementioned pricing and payments policies, the post states that, “We will continue to respect the privacy of consumers in our app stores, giving them controls to manage their data and how it is used.” Soon after, the post notes that Microsoft “will not use any non-public information or data from our app store to compete with developers’ apps.”

Smith wrote that the company will let Windows users access alternative app stores and third-party apps, with the chance to choose default settings in appropriate categories.

As for the Activision deal specifically, the company said that it will continue to make Call of Duty and other popular Activision Blizzard titles available on PlayStation through the terms of any existing agreement with Activision. Most of the principles will be extended to the app store on the Xbox console, per the post.

The implication here is that the Xbox store’s pricing structure would also change, where the model has been one where Microsoft carves out a 30% commission on purchases made through that store.

Smith noted in the blog that with new regulations on the horizon, Microsoft as a company continues “to be more focused on adapting to regulation than fighting against it.”  Change is the only constant in life and in business, and Microsoft’s move today is one that seeks to be proactive.