Software development company MacPaw, known for its Mac and iOS applications, is among the first to publicly adopt Apple’s new Digital Markets Act (DMA) rules in the EU. They are introducing Setapp, their subscription-based platform of handpicked apps, to Apple users on iOS and Mac devices in the European region. This move is significant, especially considering the resistance Apple has faced regarding its compliance with the new EU regulation.
While several companies, including Spotify, Epic Games, Microsoft, Mozilla, Proton, and others, have criticized Apple’s new system as “extortion” and “malicious compliance,” MacPaw has decided to embrace the changes. The contentious issue revolves around Apple’s implementation of a Core Technology Fee, which requires app developers outside the App Store to pay €0.50 for each first annual install over a certain threshold. This fee poses a financial burden, particularly for larger app or game developers with numerous users. Apple defends the fee by highlighting the comprehensive services it offers beyond just the App Store and payment processing, including the iOS mobile platform and app development tools.
Despite the opposition to Apple’s DMA rules, MacPaw has chosen to comply, with no current option to revert to the previous rules. They plan to launch a beta version of Setapp in the EU in April, following the DMA regulation rollout.
Image Credits: MacPaw Setapp
The Setapp subscription service will feature premium ad-free apps from more than 20 developers, including SnapMotion, PhotosRevive, Rocket Typist, Dropshare, Expenses, and others across various categories like productivity, creativity, lifestyle, and utilities. The current Setapp version offers a range of apps for $9.99 monthly and up, with pricing for the EU version yet to be revealed.
While developers can still market their apps separately on the App Store with a different bundle ID, European consumers will have the choice of where to purchase the apps.
As concerns arise regarding the financial implications of the new regulations, it remains uncertain if MacPaw’s decision will prove profitable. However, for developers seeking additional distribution channels, this move could provide another avenue to reach iOS users if the terms align with their goals.
MacPaw’s CEO, Oleksandr Kosovan, acknowledges the uncertainties and emphasizes the company’s commitment to enhancing customer experience and developer value through this opportunity, despite the potential risks.
MacPaw has already accepted Apple’s new terms. The company is inviting customers and developers to join the waitlist for the beta program, which is expected to expand over time.
