Apple and Microsoft's Rivalry Had Cooled. Now It's Back and Getting Testier

After collaborating on various projects for several years, the relationship between Microsoft and Apple is getting testier again. From a report: Around the time the PC character reappeared, Microsoft began bad-mouthing Apple to regulators, saying the company's App Store was anti-competitive. The Redmond, Washington, software giant had thrown in its lot with Epic Games, which was suing Apple for booting its Fortnite title from the App Store and accusing the iPhone maker of monopolistic behavior. A Microsoft executive has since testified against Apple at the trial, now in its second week, telling the court that Apple's tight control of its App Store had hurt Microsoft's own gaming efforts. The tensions are unlikely to ease once a verdict comes down because Apple and Microsoft are both looking to dominate the next big things in tech -- from artificial intelligence and cloud computing to gaming, tablets, custom processors and mixed-reality headsets.

The renewed antipathy between Apple and Microsoft started about a year ago. Microsoft had developed a cloud gaming service for iPhones and iPads called xCloud. One app would let users pay a monthly fee to Microsoft and stream dozens of different gaming titles from the cloud. The service was supposed to do for gaming what Netflix did for video, appease gamers and turn Apple devices into a more powerful gaming platform backed by Xbox, one of the hottest names in the industry. But Microsoft never launched the service in its intended form, having failed to persuade Apple to loosen App Store rules forbidding all-in-one gaming services. Originally, Microsoft was barred from launching any cloud-based games at all. But a few months after concerns over the ban on streaming apps went public, Apple tweaked the rules.

Microsoft can now launch a cloud gaming service, but each game must be downloaded separately, defeating the purpose of an all-in-one solution. Now Microsoft is rolling out the service on Apple devices via the web, a much less optimal experience than a real app. Around the same time, Microsoft President Brad Smith began urging U.S. and European antitrust regulators to examine Apple's practices.

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