Microsoft and Apple appear to be locked in a battle over Microsoft's SkyDrive cloud-storage app for iOS. The Next Web reports that the two companies are sparring over a 30 percent cut of revenue from purchases of SkyDrive storage. Microsoft's existing iOS app doesn't provide any options to increase storage within the app, but it does allow new users to sign up for 7GB of free space with the option to increase this via a subscription.

Apple is reportedly blocking an update to the SkyDrive iOS app as Microsoft has not agreed to sharing 30 percent of the revenue it generates from sign ups through the SkyDrive app. Microsoft's SkyDrive app hasn't been updated in June and the company hasn't provided iPhone 5 display support during this time — although Microsoft's OneNote iOS has not been updated for iPhone 5 support either.

The Next Web claims Microsoft has tried to compromise with Apple, including removing all subscription options from its iOS app update (these do not exist currently), but Apple has yet to approve its app updates. Microsoft is likely refusing to hand over a 30 percent cut of SkyDrive storage subscriptions because the revenue is perpetual even if a user moves to a Windows Phone or Android device.

Discussions might be affecting third-party devs using SkyDrive

The discussions appear to be affecting third-party developers that utilize the LiveConnect SDK for iOS apps to store content on SkyDrive. The developer of the CloudMusic for SkyDrive app revealed on Microsoft's support forums that the iOS app was rejected by Apple's review team with the reason "the log in interface must be native and not a link or a web view." Microsoft's Shelly Guo replied to the thread commenting that the company is aware of Apple's rules and "is in active discussion with Apple on this issue."

We have reached out to Microsoft for comment on the issues and we'll update you accordingly.

Update: Microsoft has confirmed its latest SkyDrive iOS update is being delayed by Apple. A spokesperson says: "Similar to the experiences of some other companies, we are experiencing a delay in approval of our updated SkyDrive for iOS. We are in contact with Apple regarding the matter and hope to come to a resolution."