Setapp Mobile Shuts Down iOS App Store, Cites Apple's Fee Structure

MacPaw, the Ukraine-based developer behind the subscription service Setapp, is pulling the plug on its iOS app store, Setapp Mobile, in the European Union. The service, which launched in open beta in September 2024, will officially close on February 16, 2026. As the Mobile & Apps Editor here at Automatica Press, I’ve been closely watching the development of alternative app marketplaces since the EU's Digital Markets Act (DMA) came into effect. This move by MacPaw highlights just how challenging it is to compete with Apple on its own turf, even when regulations theoretically level the playing field.

Apple's 'Complex Business Terms' to Blame

According to MacPaw's support page, the decision to shutter Setapp Mobile stems from Apple's "still-evolving and complex business terms that don't fit Setapp's current business model." In simpler terms: the fees and regulations Apple imposes on alternative app stores in the EU are making it difficult, if not impossible, for Setapp Mobile to turn a profit. This is a sentiment echoed by other players in the alternative app store space, most notably Epic Games.

While Setapp Mobile is ceasing operations, the original Setapp for macOS remains unaffected. It's worth remembering that Setapp is a subscription service that provides access to a curated library of Mac apps, so it’s a different beast than a traditional app store. However, this closure raises serious questions about the viability of alternative iOS app stores in the EU under the current regulatory framework. Are Apple's fees and rules simply too onerous for competitors to overcome? Is the playing field truly level, or is Apple effectively stifling competition through complex and costly compliance measures?

Epic Games Store: A Canary in the Coal Mine?

Setapp isn't alone in facing these challenges. The Epic Games Store, another prominent alternative marketplace, is also grappling with Apple's fees. MacPaw even pays the Apple fees that EU developers incur when distributing their apps through the Epic Games Store. However, as MacRumors reports, Epic CEO Tim Sweeney has stated that it is "not financially viable" for Epic to continue paying Apple's fees in the long term. Epic is hoping the European Union requires Apple to further tweak its rules for third-party marketplaces under the DMA.

This situation is a critical test of the DMA's effectiveness. The law was intended to foster competition and give consumers more choice, but if companies like MacPaw and Epic Games can't operate profitably under Apple's current rules, the goals of the DMA may be undermined. The future of alternative iOS app stores in the EU hangs in the balance, and further regulatory intervention may be necessary to ensure a truly competitive landscape. The question remains: can these smaller players find a sustainable path forward, or will Apple continue to dominate the iOS app ecosystem, regardless of regulatory efforts?