GO
Loading...

Microsoft is selling Office 365 within iPad apps, and Apple is getting Its 30 percent cut

Satya Nadella, CEO of Microsoft, speaks at a media event in San Francisco, California on Thursday, March 27, 2014.
Josh Edelson | AFP | Getty Images
Satya Nadella, CEO of Microsoft, speaks at a media event in San Francisco, California on Thursday, March 27, 2014.

While one of the big holdups for Office for iPad was getting the software just right, another was Apple's policy that apps that sell things — including subscriptions — use Apple's in-app purchase mechanism and hand over 30 percent of that revenue to Apple.

This had been a big sticking point historically, so it was one of the key question marks looming over this launch.

Indeed, Microsoft does offer Office 365 subscriptions within the just-released Word for iPad and the other Office apps and, yes, it is paying the 30 percent cut, Apple confirmed to Re/code. Microsoft declined to comment on the matter.

Re/code has the whole story.

By Ina Fried, Re/code.net.

CNBC's parent NBC Universal is an investor in Re/code's parent Revere Digital, and the companies have a content-sharing arrangement.

Contact Technology

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Squawk Alley