MacPaw Launches Setapp Mobile App Store in EU

MacPaw, a Ukrainian developer of Mac and iOS apps, has announced the release of its alternative mobile app store, Setapp Mobile, in the EU.

• The app store, which has been in closed beta for months, now offers open beta access to all users.
• Setapp Mobile features over 50 apps across categories like productivity, finance, video, photo, and creativity, including MacPaw's own offerings and apps from other developers.

Setapp Mobile's Subscription Model

Setapp Mobile operates on a subscription model, offering access to all its apps for a monthly fee of $9.99.

• Users receive a seven-day trial before committing to the subscription.
• To use Setapp Mobile, users must be running iOS 17.4 or later on their device and have an Apple ID associated with an EU member state.

Setapp Mobile: An Alternative to the Apple App Store

Setapp Mobile represents a direct challenge to the Apple App Store, leveraging the EU's Digital Markets Act (DMA) rules.

• MacPaw was one of the first companies to agree to Apple's DMA agreement, which allows developers to distribute apps through alternative app stores.
• The DMA mandates that large tech platforms like Apple must open their ecosystems to third-party app stores.

MacPaw's Strategy and Business Model

MacPaw is still refining the business model and user experience for Setapp Mobile, with the open beta release intended to gather feedback from users.

• The company aims to balance the number of apps and users to ensure a smooth user experience and adequate discovery for participating developers.
• While Setapp Mobile offers a subscription-based model, MacPaw is exploring other potential revenue streams.

Targeting iPhone Users in the EU

Setapp Mobile marks MacPaw's expansion into the iOS app store market, aiming to reach millions of iPhone users in the EU.

• MacPaw has established a strong presence in the Mac app market with its subscription services.
• The company believes its experience in app distribution and user engagement can translate effectively to the iOS app store space.

The DMA and the Core Technology Fee

The DMA's implementation has sparked controversy surrounding Apple's Core Technology Fee (CTF).

• Developers distributing apps through alternative app stores will have to pay a fee of €0.50 for each first annual install per year after exceeding 1 million installs.
• Regulators are investigating Apple's DMA compliance, specifically concerning the CTF.
• MacPaw is yet to determine if it will have to pay the CTF for distributing its apps through Setapp Mobile.

Competition in the EU App Store Market

Other companies are also entering the EU app store market with their own alternative app stores.

• Aptoide, a long-time Android third-party app store, launched a game store in June.
• AltStore PAL offers a selection of apps, including the game emulator Delta, along with Patreon-backed apps.

Challenges and Opportunities for Alternative App Stores

While alternative app stores like Setapp Mobile present new opportunities for developers and users, they also face significant challenges.

• Marketing and attracting users to these new stores are crucial for their long-term success.
• Alternative app stores must differentiate themselves and offer unique value propositions to compete with established platforms like the Apple App Store.
• The future of alternative app stores in the EU depends heavily on how effectively they address user needs, developer incentives, and regulatory requirements.