I don't think it's unfair to say that the EU scrutinizes Apple (and a few other megacorps) a great deal more than most other companies. Some zero-privacy competitors might be sailing by right now simply because they aren't already caught up in the EU's red tape. Which isn't to say Apple doesn't also wield that red tape as their own bargaining chip, like you said.
Looking closer at products of megacorps is actually exactly the point of what the EU is doing - that's where the "gatekeeper" classification comes in. In order to allow a fair competition for smaller companies, dominant companies need to make sure they offer interfaces for other products. In this case, since so many people have iPhones, they are told to offer the possibility for other AI vendors to offer a replacement model instead of forcing the lock-in to Apple(Google)'s model on the device. That doesn't necessarily impact the privacy at all, unless a user would knowingly (or ignorantly) choose a less privacy-preserving alternative. Which while some users may make a wrong choice, should be their choice to make nonetheless.
