Apple’s clash with the EU’s Digital Markets Act could accelerate the shift to alternative app stores

By Nov 4, 2025

The European Union’s Digital Markets Act (DMA) is more than a set of competition rules. Rather, it’s a reflection of Europe’s growing ambition to shape its own digital future. 

Designed to curb the dominance of global tech platforms, the Act marks a key turn in the EU’s broader effort to strengthen its digital sovereignty and build a more competitive market.

Nowhere is that ambition more visible than in Apple’s ongoing battle with the European Commission. As the company seeks to comply- and in some cases contest- the DMA’s rules governing app distribution and payment systems, the debate has crystallised into a defining test of Europe’s regulatory credibility and political will.

Brussels’ regulatory muscle

The European Commission has made it clear that the era of unchecked platform control is over. Earlier this year, Apple was fined €500 million for breaching competition obligations under the DMA, a sign that Brussels is prepared to enforce not just compliance, but also the spirit of the law.

The DMA’s rules, which apply automatically to so-called gatekeepers like Apple, are preventative rather than reactive, distinguishing the EU’s approach from the slower, case-by-case systems of markets like American and Asian.

“The DMA is preventative and holistic,” explains John Snoek, COO at Onside.io, a platform supporting indie developers. 

“It imposes predefined obligations before violations occur. Other regions rely on investigations that can take years. Europe is setting the standard for proactive governance,” he said. 

This proactive enforcement marks a wider shift in the EU’s political strategy. Digital sovereignty is not solely about autonomy, but also about ensuring the European market- and its citizens- have genuine choice and transparency.

Empowering local innovators

At the heart of the DMA’s mission is the empowerment of independent developers and regional innovators, who have long operated under platform rules that are restrictive. 

“The DMA is aimed at opening up the large platforms by allowing competing alternatives on these previously monopolistic ecosystems,” says Snoek. “This means fair competition, better economics, and more freedom for developers to innovate and consumers to choose.”

By opening the door to alternative app stores and out-of-platform payment solutions, the EU can hope to cultivate a more diverse digital economy that aligns with its broader goals under the Digital Decade 2030 strategy to support homegrown tech and SME competitiveness.

For European policymakers, the DMA can be more than an economic instrument- it’s an example that the EU will no longer be a passive consumer of global technology standards but an active shaper of them.

Apple’s core technology fee: the flashpoint

Apple’s new Core Technology Fee (CTF), a per-install charge on apps distributed outside its App Store, has quickly emerged as a flashpoint between Cupertino and Brussels. 

Critics say it undermines the DMA’s goal by penalising developers for using the freedoms the law provides.

“The Core Technology Fee is untenable [because] it creates a cost imbalance between Apple’s App Store and alternative app stores. From a DMA perspective, it violates the principle of fair and non-discriminatory access,” notes the Onside.io COO.

From Apple’s perspective, it is providing the infrastructure for its developers, including developer tools, customer support, security, and an established user base. 

It’s thus only fair that app creators pay a fee for access- €0.50 for each first annual install per year after 1 million downloads. As Apple explains, “The fee reflects the value Apple provides developers through ongoing investments in the tools, technologies, and services that enable them to build and share innovative apps with users.”

This tension shows the challenge of reconciling competition policy with commercial reality. For many in Brussels, Apple’s resistance shows why strong political will and continued enforcement capacity are crucial for the DMA to succeed.

Global ripple effects

The EU’s digital rulebook is quickly becoming an international reference point. Lawmakers in Japan and South Korea are already drawing lessons from the DMA’s framework, while U.S. antitrust regulators are watching how Brussels enforces its rules in real time.

“The DMA has become a model because it gives clarity to all actors — it sets expectations before problems occur,” Snoek says. “This makes it more predictable and fair, not just punitive.”

As other states begin to adopt similar regulatory philosophies, Europe is positioning itself as a norm-setter in global tech governance, which can mean wider positive political implications for the region.

A new chapter for European app distribution

For companies like Onside.io, success under the DMA extends beyond compliance- it means competition based on value and innovation, not gatekeeping.

“The proliferation of open platforms is a huge opportunity,” John notes. 

“It allows us to compete on service, transparency, and innovation — to create the kind of digital marketplace Europe has always envisioned.”

As Apple, Google, and others recalibrate their European operations, a new era of alternative app stores, regional marketplaces, and consumer-driven ecosystems could emerge.

The politics of the open platform

The DMA’s rollout underscores something broader than regulatory reform: the politicisation of digital power. 

Brussels’ insistence on openness reflects a strategic pivot, ensuring that Europe’s technological future is not dictated by a few global corporations, but co-created by its citizens, startups, and innovators.

What began as a fight over app store fees has become emblematic of Europe’s digital independence project. The question is no longer whether Apple will comply, but how quickly the rest of the world will follow Europe’s lead.

Featured image: Margrethe Vestager speaks at EP Plenary Session on the Digital Markets Act.
Credit: European Parliament

Disclosure: This article mentions a client of an Espacio portfolio company.

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