Mac and iOS software development company MacPaw becomes one of the first to publicly adopt Apple’s new DMA (Digital Markets Act) rules in the EU, to offer Setup, the subscription-based curated apps platform, to Apple’s iOS and Mac customers in the region. The move is notable given the backlash Apple has received regarding its compliance with the new EU regulation so far.
Various companies including Spotify, Fortnite, Epic Games, Microsoft, Mozilla, Proton, and others have called Apple’s new system “blackmail” and “malicious compliance” and issued in “bad faith.” At issue is how Apple plans to charge a new core technology fee, which allows the iPhone maker to continue to earn from apps distributed outside of its App Store. These apps will still have to pay Apple €0.50 for each first annual install per year above the 1 million mark, making it a costly move for larger app or game companies with millions of users or players. Apple justifies the fee by pointing out that it offers more than the App Store and payment processing. it also offers the iOS mobile platform and all the tools to create and share apps on iOS as well.
Although others have fought against Apple’s DMA rules, MacPaw has chosen to opt-in to a one-way conversion that does not, for now, offer a way back to Apple’s existing rules. As such, MacPaw plans to offer a beta version of its Setapp subscription service in the EU this April, after the DMA regulation comes into effect.
Image Credits: MacPaw Setup
The subscription service will offer ad-free premium apps from more than 20 developers, including SnapMotion, PhotosRevive, Rocket Typist, Dropshare, Expenses, Elk, BusyCal, Letterly, Studies, Focused Work, Be Focused, Cloud Outliner, SideNotes, Awesome Habits, Elephas, GetSound, PDF Search, SQLPro Studio, Taskheat and ClearVPN.
These apps span a variety of categories, including productivity and business tools, creative and design software, lifestyle tools, utility apps, and more. The current version of Setapp offers dozens of apps for $9.99 per month and up, depending on the platform and number of devices. Pricing for the EU version has yet to be announced.
The company tells us that participating developers are not prevented from making their app available separately on the App Store with a different bundle ID, but the choice of where to buy the app will be up to the EU consumer. While the service is likened to an alternative app store, to be clear, it will include a subscription for everyone to access its apps, which is not Apple’s App Store model.
Given concerns about the additional fees that come with the new rules, it’s unclear whether this will ultimately be a profitable move for the software company. However, for developers looking for additional distribution, another channel to reach iOS users could be beneficial if MacPaw’s terms are acceptable.
MacPaw could not predict whether the move will help boost its revenue at this time.
“Building a profitable business model takes time and feedback from the market,” said Oleksandr Kosovan, CEO of MacPaw, in an email shared with TechCrunch. “We are committed to investing in this opportunity, doing everything in our power to improve our customers’ experience and deliver greater value to developers who align with our model,” he noted.
MacPaw has already accepted Apple’s new terms, we’re told. Now the company is inviting customers and developers to join the beta waiting listwhich is expected to increase over time.
