Setapp Shuts Down Amid Apple-EU Dispute
The third-party app store Setapp has recently ceased operations, with its developer MacPaw citing the difficulty of adhering to Apple’s evolving and complex business terms as the primary reason. MacPaw explained that Apple’s conditions no longer align with Setapp’s current business model, leading to the store’s closure. This development marks a significant moment in the ongoing tension between Apple and the European Commission (EC) over app store regulations.
Apple Points Finger at European Commission
In response to Setapp’s shutdown, Apple issued a statement rejecting any blame for the collapse. Instead, the company accused the European Commission of employing political delay tactics that have hindered Apple’s ability to implement the changes requested by regulators. Apple emphasised that it submitted a formal compliance plan back in October but has yet to receive a response from the EC. The tech giant criticised the EC for moving the goalposts and unfairly targeting Apple with investigations and fines.
Background: EU Digital Markets Act and Apple’s Compliance
The context for this dispute lies in the EU’s Digital Markets Act (DMA), which came into effect in 2024 and mandated that Apple permit third-party app stores on its platform. Apple responded by introducing a fee structure for these stores, charging €0.50 for each app installation exceeding one million cumulative installs, among other conditions. However, the EC remained dissatisfied with Apple’s compliance, particularly regarding Apple’s anti-steering policies that prevented developers from informing users about cheaper purchase options outside the Apple App Store.
As a result, the EC imposed a €500 million fine on Apple in April 2025. Following this, Apple revised its pricing model in June 2025, categorising apps into two tiers: Tier 1 for apps using mandatory store services, and Tier 2 for those using optional services. The new structure includes an initial acquisition fee of 2% for all developers, with lower fees for those enrolled in Apple’s Small Business Program and for recurring subscriptions after the first year. Additionally, a Core Technology Fee (CTF) of €0.50 applies to installs exceeding one million annually, while developers who accept Apple’s StoreKit External Purchase Link Entitlement (EU) Addendum pay a Core Technology Commission (CTC) of 5% instead of the CTF.
What This Means Going Forward
Apple’s new fee system, while complex, aims to offer substantial savings to developers who comply with its terms. For example, Tier 1 developers agreeing to the StoreKit External Purchase Link Entitlement face a total charge of 10%, combining a 5% store service fee and a 5% CTC. Despite these adjustments, the European Commission is expected to conclude that Apple’s failure to adequately address the EC’s concerns contributed to Setapp’s downfall.
The situation highlights the ongoing friction between regulatory bodies seeking to open up digital marketplaces and platform owners aiming to maintain control over their ecosystems. Observers will be watching closely to see how the European Commission finalises its ruling and whether Apple will make further concessions to third-party app stores in the region.
Source: Engadget