Apple is claiming vindication and blaming the EU's delaying tactics for the collapse of a third-party app store, an outcome that the EU is reportedly preparing to pin on Apple's head.
The developer MacPaw has shut down its Setapp store, citing Apple's complex terms that "don’t fit Setapp's current business model"
In a development that is fairly aberrant, the Setapp store has shut down, with its developer MacPaw citing the inherent difficulty involved in complying with Apple's "still-evolving and complex" business terms as the casus belli, going on to note that Apple's terms "don’t fit Setapp's current business model."
In a statement that many deem pre-emptive, Apple has rejected the notion that its terms and conditions were to blame for Setapp's collapse, and has instead pinned the responsibility on the European Commission's (EC) "political delay tactics," saying that it has "refused to let us implement the very changes that they requested." The Cupertino giant's statement reads:
"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."
Do note that the EC is expected to rule that Apple was behind Setapp's collapse by failing to address the key issues it raised regarding business terms, including their complexity.
For the benefit of those who might not be aware, Apple allowed third-party app stores to operate within its ecosystem after the EU's Digital Markets Act (DMA) took effect in 2024. At the time, Apple charged such app stores EUR 0.5 for each app install exceeding 1 million cumulative installs, among other conditions.
Even so, the EC was not satisfied with Apple's compliance with the DMA, especially in relation to the Cupertino giant's anti-steering rules, which restricted app developers from informing users about cheaper purchase options outside the Apple App Store. Accordingly, the EC levied a EUR 500 million fine on Apple in April 2025.
In response, Apple changed the pricing for third-party app stores in June 2025. Apple has now divided apps into two categories: those that use its mandatory store services now reside in Tier 1, while those using optional store services reside in Tier 2.
Developers who enroll in Apple's 'Small Business Program' pay lower fees. All developers are charged an initial acquisition fee of 2 percent except those enrolled in the program and those with recurring subscriptions after the first year.
The Core Technology Fee (CTF) of EUR 0.5 is charged on all app installs that exceed 1 million annual installs. Developers who agree to Apple's StoreKit External Purchase Link Entitlement (EU) Addendum are charged a Core Technology Commission (CTC) of 5 percent rather than the CTF.
As is evident, Apple's new fee structure appears daunting at first glance. However, it does result in substantial savings. For instance, Tier 1 app developers get charged a 5 percent store service fee and a 5 percent CTC (assuming they agree to the StoreKit External Purchase Link Entitlement (EU) Addendum), resulting in a total charge of just 10 percent.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
Follow Wccftech on Google to get more of our news coverage in your feeds.
