Apple says it’s been proven right in the ongoing EU dispute over App Store rules, blaming European regulators for the shutdown of a high-profile third-party app marketplace. At the same time, EU officials are reportedly preparing to argue the opposite: that Apple’s own terms and conditions made the store unworkable.
MacPaw, the developer behind Setapp, has closed its Setapp app store, pointing directly to Apple’s “still-evolving and complex” business terms. According to MacPaw, those requirements “don’t fit Setapp’s current business model,” making it too difficult to operate under the current framework.
Apple, however, is pushing back hard and insisting its policies aren’t what caused Setapp to fold. In a statement widely seen as a pre-emptive defense, Apple accused the European Commission of slowing the process and blocking changes Apple says it tried to implement. Apple claims it submitted a compliance plan in October and has been left waiting for a response, while regulators allegedly “move the goal posts” and pursue investigations and fines.
The EU’s Digital Markets Act (DMA) took effect in 2024 and forced major platform operators to open up parts of their ecosystems. Following the DMA, Apple began allowing third-party app stores on iOS within the EU—but those stores came with significant conditions. One major component was a charge of EUR 0.5 per app install after an app crossed 1 million cumulative installs, along with various operational rules that developers said were difficult to interpret and manage.
EU regulators weren’t satisfied with Apple’s DMA approach, particularly around anti-steering restrictions. Those rules limited developers’ ability to tell users about cheaper purchase options outside Apple’s App Store. In April 2025, the European Commission fined Apple EUR 500 million over these concerns.
After that, Apple revised its fee model for third-party app stores in June 2025, rolling out a more layered structure that splits apps into two groups. Under the new approach, apps that rely on Apple’s mandatory store services fall into Tier 1, while apps using optional store services fall into Tier 2.
Apple’s updated system also includes multiple fee types that can apply depending on how an app is distributed and how purchases are handled. Developers in Apple’s Small Business Program can access lower fees. Most developers pay an initial acquisition fee of 2 percent, while small-business participants and certain long-term subscription scenarios can avoid that charge. There’s also the Core Technology Fee (CTF), set at EUR 0.5, which applies to app installs beyond 1 million annual installs. Alternatively, developers who accept Apple’s StoreKit External Purchase Link Entitlement (EU) Addendum can be charged a Core Technology Commission (CTC) of 5 percent instead of paying the CTF.
At first glance, Apple’s multi-part pricing and compliance structure can feel overwhelming—especially for third-party stores trying to build a predictable business model. Apple argues the math can still work out favorably depending on the setup. For example, Tier 1 developers may pay a 5 percent store services fee plus a 5 percent CTC, totaling 10 percent in that scenario.
The big question now is how regulators will interpret Setapp’s shutdown. Apple is positioning it as a consequence of EU delays and shifting expectations. The European Commission, on the other hand, is expected to focus on whether Apple failed to address the concerns third-party stores raised about complexity, feasibility, and the real-world impact of the new rules.
For developers, app publishers, and iOS users in the EU, this dispute matters because it will help define what “opening up” a mobile ecosystem actually looks like in practice—and whether alternative app stores can realistically survive under the current compliance and fee framework.
