Microsoft and Apple are once again at odds regarding the availability of cloud gaming apps on iOS devices. Earlier this year, Apple made changes to its App Store guidelines, allowing game streaming services like Xbox Cloud Gaming and GeForce Now to operate on iPhones and iPads. However, despite these updates, Microsoft and Nvidia have yet to release native cloud gaming apps for iOS, and Microsoft has now outlined the reasons why.

Microsoft had previously expressed that Apple’s adjustments were insufficient for their needs. In new submissions to the UK’s Competition and Markets Authority (CMA), Microsoft argues that the revisions to Apple’s guidelines in January, March, and April still don't allow them to offer a fully native Xbox Cloud Gaming app on iOS. Specifically, Microsoft points to multiple sections of Apple’s guidelines that they say continue to hinder their ability to distribute and operate such an app.

One major issue Microsoft highlights is Apple’s requirement for all content, subscriptions, and features within an iOS app to be available as in-app purchases (IAP). Microsoft argues that Apple’s 30 percent commission on these purchases makes it economically unfeasible for them to monetize their cloud gaming service effectively. Additionally, Microsoft notes that third-party game developers would need to recode their games to meet Apple’s IAP requirements.

Apple, on the other hand, maintains that its guidelines support cloud gaming through web apps and that it has made efforts to engage with Microsoft on new opportunities for cloud gaming apps on iOS. Apple also references smaller developers like Antstream, which has successfully launched a game streaming service on the App Store with Apple’s support.

The CMA is currently investigating the distribution of cloud gaming services and mobile browsers in the UK. It is considering various solutions to address competition issues, including requiring Apple to permit cloud gaming apps to operate on a "read-only" basis or allowing cloud gaming services to incorporate their own in-app payment systems.

With the CMA’s investigation ongoing and a provisional decision expected in November, the battle between Microsoft and Apple over cloud gaming on iOS is far from over, with more developments likely in the coming months.