Setapp Mobile Shuts Down Amid EU App Store Chaos
One of the first major alternative app stores to launch under Europe’s new Digital Markets Act (DMA) is closing its doors—just 17 months after going live. Setapp Mobile, operated by Ukrainian software firm MacPaw, will officially shut down on February 16, 2026, marking a significant setback for the EU’s ambitious plan to break Apple’s App Store monopoly. The move highlights growing frustration among developers over Apple’s convoluted fee structure and shifting compliance requirements, which many say undermine the very competition the DMA was designed to foster.
For users in the EU who subscribed to Setapp Mobile’s $9.99 monthly bundle—offering curated access to dozens of productivity, finance, photo, and creativity apps—the shutdown means losing seamless access to those mobile titles. Desktop versions of the same apps will remain unaffected, but the mobile experience is ending for good.
Why Is Setapp Mobile Shutting Down?
MacPaw cited “still-evolving and complex business terms that don’t fit Setapp’s current business model” as the primary reason for the closure. While vague on the surface, this statement directly points to Apple’s controversial new fee regime introduced to comply with the DMA.
Under Apple’s revised rules for the EU, developers must now navigate a multi-tiered system that includes transaction fees, notarization costs, and—most notably—the Core Technology Fee (CTF). This fee charges developers €0.50 for every first annual install beyond one million per year. For subscription-based platforms like Setapp, which distribute multiple apps to a single user, the CTF could apply repeatedly across different titles, creating unpredictable and potentially massive liabilities.
Unlike traditional app stores where revenue scales predictably with user growth, Setapp’s all-you-can-use model clashes with Apple’s per-install billing logic. “It’s not just expensive—it’s structurally incompatible,” said an industry analyst familiar with alternative store economics. “You can’t build a sustainable subscription service when your backend costs explode with each new app a user downloads.”
The Promise—and Peril—of the EU’s DMA App Store Experiment
When the Digital Markets Act took full effect in March 2024, it was hailed as a watershed moment for digital competition. By forcing Apple to allow third-party app stores and sideloading on iOS devices in the EU, regulators aimed to empower consumers and level the playing field for developers.
Setapp Mobile was among the first to seize the opportunity. Launched in September 2024, it offered a premium, ad-free, privacy-focused alternative to the mainstream App Store—curating high-quality indie and professional apps under a single subscription. Early adopters praised its clean interface and editorial rigor, reminiscent of premium software bundles from the desktop era.
But the reality on the ground proved far messier. Apple’s compliance measures, while technically meeting DMA requirements, layered on operational hurdles: mandatory identity verification, security attestations, payment processing restrictions, and the aforementioned CTF. Smaller developers and aggregators like MacPaw found themselves drowning in administrative overhead and financial uncertainty.
“The DMA opened the door, but Apple built a maze behind it,” said one EU-based app developer who asked to remain anonymous. “We wanted to innovate, not become tax accountants.”
What This Means for EU Users
If you’re an EU resident currently using Setapp Mobile, your access ends on February 16, 2026. After that date, all apps distributed through the platform will be removed from your device unless they’re also available via the official App Store or another source.
MacPaw has confirmed that Setapp Desktop—which offers over 240 macOS and Windows applications—will continue operating normally. But the mobile vision, once positioned as a flagship example of post-DMA innovation, is being shelved indefinitely.
For consumers, this raises uncomfortable questions: Was the DMA’s promise of choice and competition real—or just regulatory theater? While giants like Epic and Spotify may have the resources to weather Apple’s new system, smaller players appear to be getting squeezed out. The result could be fewer alternatives, not more.
Apple’s Fee Structure Under Fire
Apple insists its new EU rules are necessary to maintain security, privacy, and platform integrity. The company argues that the Core Technology Fee helps offset the cost of maintaining its infrastructure while still allowing alternative distribution.
But critics counter that the fee is deliberately punitive. At €0.50 per qualifying install, a moderately successful app with 2 million EU users could owe Apple €500,000 annually—on top of any commission from in-app purchases. For a bundled service like Setapp, where one subscriber might install 10–15 apps, the math becomes untenable.
Regulators are taking notice. The European Commission has reportedly opened informal inquiries into whether Apple’s implementation of the DMA constitutes “strategic compliance”—technically legal but functionally anti-competitive. A formal investigation could follow if evidence mounts that Apple is weaponizing complexity to deter rivals.
Innovation vs. Compliance
Setapp Mobile’s exit isn’t just a business failure—it’s a cautionary tale about the gap between policy intent and real-world execution. The DMA was crafted to encourage innovation, yet its rollout has exposed how easily dominant platforms can reshape rules to protect their turf.
MacPaw, known for its respected CleanMyMac and Setapp desktop products, isn’t a fly-by-night operator. It invested heavily in building a compliant, user-friendly mobile store.
Other alternative stores, including those from established players, are now watching closely. If Setapp—a well-funded, reputable company—can’t survive Apple’s new regime, who can?
What Comes Next for Alternative App Stores in the EU?
Despite this setback, the alternative app store ecosystem in the EU isn’t dead—yet. Several other platforms have launched, including niche stores focused on gaming, privacy tools, or open-source software. But most are avoiding subscription bundles or high-volume distribution models that trigger Apple’s CTF.
The long-term viability of these efforts hinges on two factors: clearer regulatory guidance from Brussels and potential reforms to Apple’s fee structure. Some EU lawmakers are already calling for caps on the Core Technology Fee or exemptions for non-commercial or small-scale distributors.
Until then, developers face a stark choice: adapt to Apple’s labyrinthine rules or stay out of the mobile alternative store space altogether. For now, Setapp Mobile’s closure serves as a sobering reminder that opening a door doesn’t guarantee anyone will walk through it—if the hallway is lined with traps.
