The long-standing tension between Apple and the European Commission has reached a boiling point this week. Apple has accused EU regulators of using “political delay tactics” to stall new app policies, claiming the Commission is intentionally creating a pretense to levy heavy fines against the tech giant, as reported by Bloomberg.
This aggressive stance from Cupertino comes as reports surface that the Commission is preparing to blame Apple for the closure of Setapp, one of the first major third-party app marketplaces on iOS. Developed by MacPaw, Setapp recently announced it will shut down its mobile operations next month, citing business terms that simply no longer work for its subscription-based model.
Setapp entered the EU market as a promising alternative to the traditional App Store, enabled by the Digital Markets Act (DMA). However, the road has been rocky. MacPaw pointed to “still-evolving and complex business terms” as the primary reason for the shutdown, suggesting that Apple’s current fee structure makes it nearly impossible for independent stores to thrive.
Currently, third-party marketplaces in the EU are subject to a Core Technology Fee (CTF) of €0.50 per installation once they pass the 1 million install threshold. For a curated subscription service like Setapp, these “per-install” costs can quickly outweigh revenue, especially when the same fee applies to every individual app downloaded through their store.
Apple claims it has already tried to solve these issues. Last year, the company announced plans to transition from the flat €0.50 fee to a 5% revenue share model, which many developers consider a much more sustainable option. However, Apple alleges that the European Commission is the one holding up the progress. “The European Commission has refused to let us implement the very changes that they requested,” Apple said in a recent statement. The company revealed it submitted a formal compliance plan in October, yet they are still waiting for a response. Apple argues the EC is “moving the goal posts” to maintain a narrative of non-compliance.
Beyond the fee dispute, Apple is questioning whether European consumers even want these alternatives. The company stated there is no demand in the EU for third-party stores and pushed back on the idea that its actions caused Setapp’s failure. While the Epic Games Store and AltStore remain active, Apple suggests the App Store’s dominance is driven by user preference rather than a lack of options.
Regulators are reportedly preparing to cite Apple’s failure to reduce the complexity of its terms as a primary factor in the market’s lack of competition. If the Commission finds Apple in breach of the DMA, the company could face fines totaling millions of dollars.
Is Apple intentionally making things difficult for competitors, or is the EU being too aggressive with its regulatory demands? Let us know in the comments below! Stay updated with the latest news on this by downloading the Appleosophy App from the App Store or by visiting our website.
