Apple Critiques EU Inaction as Alternative App Store Fails

Apple is expressing disappointment over the perceived failure of a third-party app store, attributing the situation to alleged delays orchestrated by the European Union (EU).Contrarily, the EU is reportedly gearing up to place the blame for this collapse squarely on Apple’s shoulders.

MacPaw Closes Setapp Store Due to Apple’s Stringent Terms

In an unexpected turn of events, MacPaw has announced the closure of its Setapp store. The company cited the complexities of Apple’s ever-changing business terms as the primary reason for this decision, asserting that these conditions “don’t fit Setapp’s current business model.”This development underscores the ongoing friction between developers and platform holders.

In what many view as a defensive maneuver, Apple has dismissed the idea that its terms contributed to the demise of Setapp. Instead, the tech giant has attributed the situation to the European Commission’s (EC) so-called “political delay tactics, ”asserting that the Commission has hindered necessary changes that Apple had been eager to implement.

“In October, we submitted a formal compliance plan and they have yet to respond. The EC is using political delay tactics to mislead the public, move the goal posts, and unfairly target an American company with burdensome investigations and onerous fines.”

Looking ahead, the EC is anticipated to conclude that Apple bears responsibility for Setapp’s closure due to its failure to effectively address critical issues related to business terms and their intricate nature.

For context, Apple began permitting third-party app stores to operate within its ecosystem following the recent enactment of the EU’s Digital Markets Act (DMA) in 2024. At that time, Apple imposed a fee of EUR 0.5 for every app installation exceeding a cumulative total of 1 million.

However, the European Commission expressed dissatisfaction with Apple’s compliance regarding various aspects of the DMA, particularly Apple’s anti-steering rules. These rules prevent developers from informing users about potentially cheaper purchase options available outside Apple’s App Store. Consequently, in April 2025, Apple faced a hefty fine of EUR 500 million.

A table comparing 'Store Services - Tier 1' and 'Store Services - Tier 2' shows commission/fees details including rates — Source

In reaction to the fine, Apple revised its pricing model for third-party app stores in June 2025. The company has categorized apps into two distinct tiers: Tier 1 for those using mandatory store services, and Tier 2 for those utilizing optional services.

Furthermore, developers registered in Apple’s ‘Small Business Program’ enjoy reduced fees. All developers incur an initial acquisition fee of 2 percent, except for those enrolled in the program or those with recurring subscriptions beyond the first year.

A Core Technology Fee (CTF) of EUR 0.5 applies to all app installations that surpass 1 million annually. Developers who opt for the StoreKit External Purchase Link Entitlement (EU) Addendum face a reduced Core Technology Commission (CTC) of 5 percent instead of the CTF.

While Apple’s new fee structure may seem imposing initially, it can actually lead to significant savings. For instance, Tier 1 app developers are charged a total of 10 percent, which encompasses a 5 percent store service fee alongside a 5 percent CTC if they agree to the aforementioned addendum.

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