Setapp Mobile to Shut Down iPhone App Store in 2026 Blaming Apple Business Terms
MacPaw has officially announced the closure of Setapp Mobile, its alternative app marketplace for the iPhone, citing "evolving and complex business terms" from Apple that have made the service unsustainable. The third-party store, which was among the first to capitalize on the European Union’s Digital Markets Act (DMA), is scheduled to permanently shutter on February 16, 2026.
The decision marks a significant setback for the alternative app store movement in the EU. Setapp Mobile launched in full public release in September 2024, following a limited beta period. The service was designed to replicate the successful "Netflix for apps" model found on the Mac, providing access to more than 50 premium iPhone applications through a single monthly subscription fee. However, less than two years after its debut, MacPaw has determined that Apple's current regulatory framework makes the exit inevitable.
The Fragmented Future for Subscribers
Why is a major player like MacPaw pulling the plug on a platform that was supposed to represent the future of iOS? According to an official support notice, the core issue lies in the business terms imposed by Apple on alternative marketplaces—specifically the Core Technology Fee (CTF). Under Apple's EU mandates, developers must pay €0.50 for each first annual installation after a 1-million-install threshold. For a curated, high-volume subscription model like Setapp’s, these per-install costs create a mathematical ceiling where the more successful the store becomes, the more it risks insolvency.
For current users, the fallout is immediate and potentially expensive. When the store closes next month, subscribers will likely be forced to transition to individual subscriptions for the specific apps they currently use. MacPaw has warned that this transition is necessary for users to maintain continued access to the data stored within those applications. This fragmentation of services is exactly what Setapp’s centralized model was intended to prevent, highlighting the friction that remains between third-party developers and Apple’s ironclad control.
A Short-Lived Experiment in the EU Market
The timeline of Setapp Mobile serves as a case study for the challenges of the post-DMA era. Despite a launch that saw the platform surpass 10,000 subscribers, the demographics of the user base created an unexpected hurdle. Ironically, a significant portion of these users were non-EU enthusiasts—primarily based in the U.S.—using VPNs and side-loading workarounds to bypass regional restrictions. This "enthusiast" traffic likely complicated MacPaw’s compliance audits and billing, as the store was legally tethered to the EU market while its most vocal fans were abroad.
This closure is strictly limited to the iOS marketplace. MacPaw confirmed that Setapp for Mac remains unaffected and will continue to operate as the company's flagship product. The company’s focus appears to be retreating from the volatile mobile marketplace landscape to its more stable, long-standing desktop roots where it has operated since 2016.
Looking Toward the February 2026 Deadline
Between now and the February 16 deadline, Setapp Mobile is expected to provide further guidance to its subscriber base regarding app transitions. The landing page for the mobile service now redirects to a support document detailing the wind-down notice, signaling that the company has already begun the process of decommissioning operations.
As the tech industry watches, the failure of Setapp Mobile raises questions about the long-term feasibility of other third-party iPhone stores. If a well-established entity like MacPaw cannot make the numbers work under the weight of the Core Technology Fee, it suggests that Apple’s response to the DMA has achieved its likely goal: a form of "malicious compliance" that keeps the iOS ecosystem technically open but commercially impossible.