One of the most popular alternative app stores in the European Union, Setapp Mobile, has announced it will be shutting down next month.
The Ukrainian-based developer said Apple’s “complex business terms” have forced the store to close. The tech giant has been subject to multiple notices from the EU over non-compliance, with an increasingly complicated web of fees and charges creating further uncertainty.
In this ever-changing environment, developers are hesitant to launch or continue supporting their apps on alternative app stores. It also makes operating these stores extremely difficult, as Apple appears adversarial to the very idea of alternative marketplaces and to the EU’s ruling on the matter.
“Setapp Mobile was a bold, breakthrough project that aimed to provide EU iOS users with access to alternative app marketplaces,” the company said in a statement to TechCrunch. “We are proud of what we have accomplished with it… As a result of still-evolving commercial conditions, we have determined that it is not viable to continue development or support within Setapp’s current business model.”
The app is expected to shut down on Feb. 16.
Apple originally charged developers a €0.50 flat fee for each first install over 1 million, but later changed this to an initial acquisition fee of 2% and a store services fee of either 5% or 13%, depending on the developer tier. There is also a Core Technology Commission for developers who want to use alternative payment methods, bypassing Apple’s 15% or 30% fee for its own iOS payment service.
By the end of the process, developers may not be saving much by distributing through these stores, which have far fewer users and require additional development effort to operate effectively.
There are still a few large alternative stores available, including the Epic Games Store and AltStore. But these tend to serve niche audiences. Given Apple’s continued resistance to compliance, it appears unlikely that a general-purpose alternative app store will thrive under the current conditions.
Apple soaking up fines
Apple has shown little concern over being reprimanded, cautioned, or fined by the EU for its handling of alternative app stores. The company was fined €500 million by the bloc in April last year after failing to comply, and was forced to allow EU-based developers to promote and link to offers outside their apps.
It may view these fines as an acceptable cost if they make it difficult for alternative app stores to gain meaningful traction among iPhone users. Apple’s App Store facilitated $1.3 trillion in app sales and billings in 2024, and the company sees its Services segment as a key driver of future profitability.
While niche use cases such as emulators and open-source apps may attract a small, tolerant audience, the outlook for alternative app stores targeting the broader public remains bleak.
Not just the EU unhappy with the App Store
The EU is not the only organisation critical of Apple’s App Store practices. Elon Musk’s xAI has sued Apple over the App Store rankings of Grok.
According to Musk, Apple has suppressed Grok’s growth by keeping ChatGPT at the top of the App Store rankings, despite Grok allegedly recording higher download numbers on certain days and weeks in the United States and other markets.
Musk has also sued both Apple and OpenAI, alleging they have stifled Grok’s growth in favor of ChatGPT by integrating ChatGPT exclusively into Apple Intelligence.
Also read: Apple told regulators to repeal the DMA as disputes over App Store compliance continue.
