Opportunities for European App Entrepreneurs in Today’s Open iPhone Marketplace

For the past years, app developers in Europe and abroad have been reading the news of Apple clashing with European Union laws over the iOS app store. The main issue, the end of the European iOS market monopoly.

Today, while Apple has opened up its iOS ecosystem, aligning with the Digital Markets Act (DMA), the company from Cupertino, California, is still fighting back. This leaves local and international companies that develop apps wondering what comes next in the EU. 

Is the Apple-EU storm over? Moving forward under a ‘reluctant compliance’ landscape

Recently, Apple released a new report claiming that cuts in developers’ fees, applied to the Apple App iOS Store to comply with EU regulations, are not translating into reduced costs for EU users. 

“Large platforms like Apple do a lot to protect their app store business models because it is obviously a multi-billion dollar market,” says John Snoek, Chief Operating Officer at Onside.io, an alternative iOS app store for app distribution in the EU. 

“When Apple and EU regulators go head to head with large fines, that is a lot of (media) noise,” Snoek says. Snoek added that the most important change in Apple’s policy in the EU came with the release of iOS 18.6, and its new “user experience” for those looking to download apps from alternative app stores. 

“That meant, for the consumer who wanted to download an alternative app store, (that) they didn’t have to go (through) 17 scary screens that asked them ‘Are you sure?’, or ‘This is not secure for your data,’” he says. 

“That is what I call reluctant compliance,” Snoek says. However, he acknowledges that things have changed. 

“It’s not optimal yet, but it is a lot better,” he says.  

The COO says that ‘challengers’ (companies that manage alternative app stores) move forward to differentiate themselves despite the current conditions. They see the official Apple iPhone store as one that offers a suboptimal service, inflated pricing, rigid onboarding, and poor developer support under a monopolistic model. Breaking away from this model for them represents a significant business opportunity to break into the market. 

Pricing, onboarding, support, and communication driving organic traffic to alternative iOS app stores

There are several alternative app stores in the EU for iPhone users, including AltStore PAL, the Epic Games Store, Setapp Mobile, Mobivention, Skich, and OnSide.

OnSide is focused on building trust with developers and users in Europe. Their main differentiators are pricing, time to market, good service, and clear personal communications for developers.

In the EU, developers can choose between Apple’s traditional model, which charges a percentage commission (15% or 30%) on sales processed through the App Store, or a new system that combines lower commission (e.g. 10% or 17%) on sales with Core Technology Commission (CTC) for high-volume apps that exceed 1 million first annual installs. These pay a €0.50 Core Technology Fee for each install above that threshold.

While some app development entrepreneurs working in the EU are still on the fence when it comes to listing their apps in alternative iOS stores, others see it as an opportunity to do more, experiment, and open new business channels, Snoek says. 

Reduced pricing, personal support, and quicker and less complicated onboarding reduce time to market and give companies the possibility to test different business concepts with speed, without making large investments or working with high commissions, he adds. 

Currently, there is no official EU data on how many users are engaging with alternative app stores. 

Snoek explains that OnSide tracks their landing page, downloads, payments, and retention. While there is an organic interest from developers, it is not that high yet.  

How is it different for developers building an app for an alternative store?

Regarding time to market, local EU app entrepreneurs, those local developers who have complied with laws like the General Data Protection Regulation (GDPR), and other more strict fintech laws and rules in the region, have a compliance experience advantage. This helps them reduce time to market. 

The differences between building a compliant app for Apple’s App Store or an alternative?

“Building an app for an iOS device, that is still the same (for developers),” Snoek says. “What can be quicker is the procedural part.”

Apple’s big tech nature translates into time lost in app reviews, and offers limited support, and a “black box” experience, Snoek says. 

“[In alternative app stores] developers have a more central role because they are key to our success,” he says. 

“Reduced time to market also implies reduced costs,” he adds.  

Another benefit of faster time to market for developers is the data that flows in when an app goes live. “This is when they learn from users, improve, and make changes to their products and services,” Snoek says. 

What will the future of an open iOS marketplace look like?

The long-term scenario of an open digital marketplace for European users is one that interests countless executives and businesses. The big question being, how will it look?

Are a couple of new companies positioning themselves as big players in the iPhone marketplace, or will it be more diverse in choices for users? And how will users behave in such a scenario? As mentioned, today the number of alternative stores in Europe can be counted with both hands. 

A widely diverse marketplace where numerous small alternative app providers coexist is unlikely, because as of today, Apple mandates a 1 million Euro credit for alternative app stores.  

“I think the alternative app stores that (exist) now, most of them will still be there in a year, two years time,” Snoek says.

The biggest challenge for these companies is marketing. “To really grow the alternative app stores, we need to do more on PR or on communication for the larger market,” Snoek says.  

Many end users in Europe today are not aware of the details of an iOS marketplace and what it implies, he said, beyond hearing the news on million-dollar DMA fines against Apple.

“There is still work to be done on delivering the message to users that they do have a choice, that alternative apps are safe,” Snoek says.