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EU’s Digital Markets Act Spurs Growth of Alternative App Stores, Shaking Up Apple’s Monopoly

…more competitive and diverse digital marketplace

Joan Aimuengheuwa by Joan Aimuengheuwa
August 21, 2024
in Company News
Reading Time: 2 mins read
0
EU’s Digital Markets Act Spurs Growth of Alternative App Stores, Shaking Up Apple’s Monopoly

Setapp, one of the new App Stores

The European Union’s recent implementation of the Digital Markets Act (DMA) has opened doors for alternative app stores, altering the sector of app distribution within the region. 

The new regulation is boosting competition and providing consumers with more choices, diverging from the traditional monopoly held by the Apple  App Store.

Under the DMA, third-party app stores are now able to operate alongside Apple’s, though they must adhere to certain baseline standards set by Apple to ensure platform genuity, such as being free from malware. 

However, these third-party platforms have the autonomy to establish their own policies for app approval, customer support, and refunds — areas that were previously under Apple’s strict control.

For developers, entering this new market involves accepting Apple’s alternative business terms tailored for DMA-compliant apps in the EU.

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This includes a newly introduced Core Technology Fee of €0.50 for each app’s initial installation, even before reaching the threshold of one million installs, a standard that applies to all apps distributed under Apple’s terms in the EU.

Despite the complexity of these new regulations, several developers have seized the opportunity to launch their own alternative app stores. These platforms offer a range of apps, many of which were previously unavailable or restricted on the Apple App Store.

One of the leading alternatives is AltStore PAL, co-created by Riley Testut, who is also known for the Nintendo emulator app Delta. AltStore PAL allows independent developers to distribute apps, bypassing the need for Apple’s review process. Notably, this store is unique in that it enables developers to self-host their apps, giving them full control over distribution.

Setapp Mobile, developed by MacPaw, is another noteworthy alternative. This platform was built as a response to the DMA and offers a subscription-based model where users can access a curated selection of apps. The service is currently available only to users in the EU and excludes big-name apps like Facebook and Netflix.

Epic Games has also entered the fray with its own app store, offering popular titles like Fortnite, Rocket League Sideswipe, and Fall Guys. This comes after Epic’s prolonged legal issues with Apple over App Store policies, further pointing to the importance of the DMA in reshaping the app sector.

Other emerging alternatives include Aptoide, a Lisbon-based open-source app store known for its Android offerings, and Mobivention marketplace, which was built for B2B clients by providing a platform for internal corporate apps.

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