Are developers actually making money on third-party app stores?
Apple’s introduction of third-party app stores for iOS and iPadOS in the European Union in 2024 was widely expected to disrupt the company’s App Store monopoly and create new opportunities for developers. Early results, however, suggest the market opportunity remains limited. Setapp, a subscription-based app aggregator platform, ceased operations earlier this year, directly attributing the shutdown to Apple’s complex EU regulatory requirements. Even Epic Games, which launched its independent mobile store in August 2024 with significant resources and considerable industry momentum, has struggled to compete effectively. The store has generated relatively minimal market impact against Apple and Google’s entrenched duopoly. These developments raise critical questions about whether developers can realistically generate meaningful revenue through alternative distribution channels under current conditions. Apple’s regulatory compliance requirements appear to create substantial structural barriers to entry for competing platforms. The regulatory opening in the EU has not yet translated into a viable alternative ecosystem, suggesting that policy intervention alone may be insufficient to support third-party store viability without additional market adjustments.