MacPaw Embraces Apple’s DMA Rules, Offering Setapp Alternative in the EU
In a bold move, MacPaw, a leading software development company, has become one of the first to embrace Apple’s new Digital Markets Act (DMA) rules in the European Union (EU). This decision will allow MacPaw to offer its subscription-based app platform, Setapp, to Apple customers on iOS and Mac devices within the region.
Apple’s DMA Compliance and Industry Pushback
Apple’s compliance with the DMA has drawn criticism from several companies, including Spotify, Epic Games, Microsoft, and Mozilla. These companies have labeled Apple’s approach as “extortion” and “malicious compliance,” alleging that it was implemented in bad faith.
The core issue lies in Apple’s plan to charge a new “core technology fee” to app developers who distribute their apps outside the App Store. This fee, which stands at €0.50 for each first annual install over a 1 million threshold, has raised concerns among app makers with large user bases. Apple justifies the fee by citing the value it provides beyond the App Store, including the iOS mobile platform and app development tools.
MacPaw’s Strategic Choice
Despite the industry pushback, MacPaw has opted to embrace Apple’s DMA rules. This one-way conversion means that MacPaw cannot revert to Apple’s existing rules in the future. The company plans to launch a beta version of its Setapp subscription service in the EU in April, coinciding with the DMA regulation’s implementation.
Setapp: A Premium App Subscription Service
Setapp offers a curated collection of premium, ad-free apps from over 20 developers. These apps span various categories, including productivity tools, creative software, lifestyle apps, and utilities. The current version of Setapp offers dozens of apps for a monthly subscription fee of $9.99 or higher, depending on the platform and number of devices. The pricing for the EU version has yet to be announced.
Developer Options and Consumer Choice
MacPaw emphasizes that participating developers are not prohibited from selling their apps separately on the App Store under a different bundle ID. The choice of where to purchase the app will ultimately lie with EU consumers. While Setapp has been described as an alternative app store, it is important to note that it operates on a subscription model, unlike Apple’s App Store.
Uncertain Profitability and Developer Benefits
The profitability of MacPaw’s move remains uncertain due to the additional fees associated with the new rules. However, for developers seeking additional distribution channels, Setapp could provide a valuable platform to reach iOS users, provided MacPaw’s terms are acceptable.
MacPaw’s Commitment and Future Plans
MacPaw acknowledges that predicting the impact of this move on its revenue is challenging. The company remains committed to investing in this opportunity, prioritizing customer experience and supporting developers who align with their model.
MacPaw has already accepted Apple’s new terms and is inviting customers and developers to join the waitlist for the Setapp beta, which is expected to expand over time.