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Microsoft’s decision to open its Windows 11 marketplace to all kinds of apps - and charge absolutely no commission in some circumstances - is a targeted shot at the Apple and Google stores under scrutiny from regulators on anti-competitive grounds.
The new Windows operating system was unveiled overnight and promises a raft of improvements, including a much more modern look, less annoying updates, compatibility with Android apps via a partnership with Amazon, more efficient performance and close integration with Microsoft’s communication and gaming services. But the revamped Microsoft Store is potentially the most interesting part.
The new Microsoft Store will host more kinds of apps — including some built for Android — and will let developers choose their payment system.
The Microsoft Store launched in 2012 for Windows 8 quickly became something of a laughing stock. Users were accustomed to downloading programs directly from developers themselves, and developers in turn were not used to paying Microsoft a fee. Things have improved since then, but it’s still fair to say the store is not the primary place Windows users go to get new programs, which is in contrast to how things work on Android, iOS and to an extent MacOS.
But rather than trying to beat Apple and Google at their own game, Microsoft is now declaring that game to be unfair. Starting today it is accepting apps built on any framework to the Microsoft Store, and from the end of next month developers can also choose to use any payment apparatus. If they choose Microsoft’s, they’ll pay a 15 per cent fee, but if they choose otherwise they don’t have to pay Microsoft anything.
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The result will likely be a huge influx in apps to the store, which previously would have stuck to selling from their own web pages. Microsoft has already announced that previous hold-outs Adobe Creative Cloud, Disney+, and Zoom have agreed to participate. The one exception to the new paradigm is games, where it appears developers still need to go through Microsoft and pay 12 per cent.
These moves are important in the context of Apple and Google charging all developers a 30 per cent fee (down to 15 per cent for small businesses), and mandating that all developers use their payment mechanisms.
The two companies have been embroiled in antitrust suits and subject to regulatory scrutiny over their stores, including in Australia from Fortnite-maker Epic Games and the ACCC.
It’s certainly no coincidence, with Microsoft CEO Satya Nadella stating at the Windows 11 event — and again on Twitter — that he thinks such ecosystems are restrictive and bad.