Remember when the European Union’s Digital Markets Act (DMA) was supposed to blow the doors off Apple’s walled garden? We were promised a utopia of choices, lower prices, and developer freedom. Well, it is 2026, and if you look around the landscape today, the reality is a lot more complicated—and frankly, a bit messier—than anyone predicted.
We are currently witnessing what industry insiders are calling the “Great Shakeout.” While the regulations forced Apple to open the gate, the toll to walk through it remains steep. The market is splitting into two distinct camps: the massive corporate juggernauts that can afford to fight a war of attrition, and the scrappy indie projects running on passion. The middle ground? It is disappearing fast.
Why Did Setapp Mobile Suddenly Shut Down?
The biggest news hitting the wire recently is a somber reality check for subscription fans. MacPaw, the developer behind the popular utility suite Setapp, officially shut down its Setapp Mobile marketplace in the EU on February 16, 2026.
For a while, Setapp looked like the “good guy” alternative—a curated subscription for premium productivity apps. So, what went wrong? According to MacPaw’s support page, the decision came down to “complex business terms” that simply made the venture financially unviable.
This is code for “the math didn’t work.” Apple’s compliance framework initially involved a controversial Core Technology Fee (CTF) of €0.50 per install. For a business model based on bundling dozens of apps for a single low monthly price, paying a flat fee per user install likely eroded margins to the point of no return. It is a stark reminder that regulatory permission to exist is not the same as a viable business model.
How Is Apple Changing Its Fee Structure in 2026?
Speaking of fees, Apple hasn’t been standing still. Recognizing that the flat fee was a non-starter for many freemium apps, Cupertino pivoted slightly this year. Starting January 1, 2026, Apple began transitioning developers from the flat Core Technology Fee to a new model: the Core Technology Commission (CTC).
This new structure charges a 5% commission on digital goods. While this might sound better than a flat fee for some, it represents a continued friction point. It effectively replaces one barrier with another, ensuring that Apple continues to monetize transactions that happen outside the App Store. This shift is likely a response to the intense criticism regarding the original CTF, but as Setapp’s exit demonstrates, these evolving terms are still too volatile for mid-sized players to build a stable foundation on.
Which Alternative Stores Are Still Standing?
It is not all doom and gloom. While the middle market struggles, other players are finding their footing by targeting specific niches or leveraging massive war chests.
Aptoide: This third-party veteran fully launched its dedicated iOS game store in the EU in February 2025. They are winning over power users with a killer feature: “App Versions.” This allows users to roll back games to previous builds—something Apple’s native store has never allowed. CEO Paulo Trezentos noted that while users have “newfound freedoms,” there is still “a huge amount of work” needed to truly open iOS globally.
AltStore PAL: The indie darling created by Riley Testut is proving that small can be sustainable. By keeping overhead low and catering to the emulation and enthusiast crowd, AltStore is actually expanding. They announced plans in late 2025 to move beyond the EU into Australia, Brazil, and Japan, with a UK launch slated for later this year.
Mobivention: You might not hear about them in consumer headlines, but Mobivention is chugging along as a B2B marketplace, helping corporations distribute internal apps without the usual App Store headaches.
Where Are Epic Games and Others Going Next?
The biggest disruptor, of course, remains Epic Games. CEO Tim Sweeney is playing the long game, using Fortnite as a battering ram to open doors worldwide. Following new regulatory frameworks in the UK and Japan implementing their own digital competition laws in 2026, Epic has confirmed aggressive expansion plans.
Sweeney recently declared that “Fortnite will now return to iOS in Japan and UK next year,” calling these regions the “new free world.” However, this declaration from June 2024 (referring to a 2025 launch) was superseded in December 2025 when Epic Games confirmed that Fortnite would NOT return to iOS in Japan (and likely the UK) due to Apple’s new fee structures (the CTC). This highlights a crucial trend: the battle for app store freedom isn’t happening in a vacuum. As the UK and Japan bring their laws online, we are seeing a patchwork of availability where a store might exist in London or Tokyo but be blocked in New York.
The Bigger Picture
The closure of Setapp Mobile is the canary in the coal mine. It validates the cynics who argued that Apple’s compliance strategy—malicious compliance, some might say—was designed to make third-party marketplaces economically impossible for anyone but the largest corporations. We are seeing a market consolidation where only giants like Epic Games (who can subsidize losses to prove a point) or niche hobbyist platforms like AltStore can survive the fee structures.
The losers here are the mid-sized innovators and, ultimately, the consumers who wanted curated, premium alternatives to the App Store’s algorithm-driven chaos. Unless regulators in the EU intervene to cap Apple’s new Core Technology Commission, the “revolution” will remain a luxury only the wealthy can afford.