Alternative app stores emerge in Europe for iPhone users

Epic Games Store

The European Union’s enforcement of the Digital Markets Act, aimed at curbing big tech dominance, is leading to the emergence of alternative application (app) stores that could potentially replace Apple Inc.’s iOS-exclusive App.

According to multiple sources from the information technology (IT) industry on Sunday, a total of five major service providers launched separate app stores for iPhones. They include Epic Games Store, AltStore, Setapp Mobile, Aptoide App Store, and Mobivention App. Korea’s ONE Store is also developing a separate app store for iOS.

Epic Games is at the forefront of this movement as it introduced the Epic Games Store, enabling its app store to be downloaded on iOS devices in EU member countries, on Friday. Users can now download various games such as “Fortnite” and “Fall Guys” via the Epic Games Store.

Epic Games Founder and Chief Executive Officer Tim Sweeney noted that all Android users worldwide and iOS users in Europe can now enjoy games via the Epic Games Store, just as they have always done on open platforms such as PC and Mac.

In the European Union, universal app stores that can be downloaded on iPhones are appearing more frequently. These new stores have reduced their commission rates to offer paid games at lower prices.

Examples include Setapp Mobile has launched an ad-free subscription-based app store with around 40 apps currently available. AltStore has adopted a sponsorship model, allowing users who support app developers to access exclusive apps or additional features, while Aptoide App Store offers discounts of 5 to 10 percent for users who make regular in-app purchases and charges relatively low commissions of 10 percent for paid app downloads and 20 percent for in-app purchases. Mobivention App provides an app store and solutions useful for companies developing and distributing apps exclusively for their employees, supporting app registration, approval, and user statistics analysis.

Korean app market One Store is aiming to launch an iOS-exclusive app store in the EU as early as 2025 and plans to leverage its relatively lower transaction fees compared to other app stores. It is exploring various strategies for entering the European market, including partnerships with local game publishers and telecom companies.

The rise of these iOS app stores is driven by the EU’s stringent DMA regulations. This law focuses on regulating platform operators that are considered gatekeepers due to their size, mandating that platform companies must not prioritize their own products and must not discriminate against external search engines, web browsers, or app stores.

Platforms must be open to external entities. Violations of the law can result in fines of up to 10 percent of global annual revenue for initial infractions and 20 percent for repeated violations. The EU Commission warned of large fines against Apple for its restrictive App Store practices in June 2024, stating it violates the DMA. Apple was fined 1.8 billion euros in March for abusing its market dominance in the music streaming app sector.

The emergence of third-party app stores is likely to impact Apple’s revenue. According to Statista, consumer spending on Apple’s App Store increased from $83 billion in 2022 to $86 billion in 2023 and is projected to hit $125 billion in 2027.