The EU - "it would be a shame if something happened to your business model". idk it sounds like the EU is becoming more like organized crime in how they act - "and hey we need you to make a way to break E2E encryption so we can monitor".
Business models do not have by their own virtue validity. They are only as valid as they are societally useful (and) as a side-effect produce economic value. Which can either be captured privately, or publically or on the consumer side (consumer surplus).
Not allowing iPadOS to be a full fledged OS, when it literally can (an iPad is just a Macbook Air with no keyboard at this point) is intentional attempt to reduce consumer surplus. The state can intervene to limit such technically unjustified attempts. And it should. And it does (thankfully).
Their business model can be whatever they like outside the EU. To do business inside the EU then you follow EU law, or you leave the EU market.
Apple doesn't have to do business here, they can leave if they think the regulatory environment is not favourable for their business needs. The vast majority of people here won't care much or at all.
Every government does this, it's a non-sequitur. The USA imposes tariffs to protect its companies/market (Boeing vs Embraer/Bombardier, Chinese steel and EVs, etc.) all the time.
If you want to do business in the EU you follow EU laws, you don't need to do business in the EU if you don't want to, it's your choice to abide by them or not. The incentive to participate is in the EU being a huge and rich market.
And arguably U.S. has more protectionist trade policy than EU.
It is in a trade war with China, it has always historically preferenced American auto makers (chicken tax) and it even goes so far as to discriminate its dear allies with Inflation Reduction Act.
Not to speak of "Buy American" laws which there's multiple (granted EU is "granted" "American" status under these laws -- but that can change at any time).
Europe's protectionism is mainly in foodstocks. And that protectionism is in part motivated by real reasons -- that of food safety (American cows injected by Bovine somatotropin, a harmful to humans, growth hormone, etc) or heritage (protected geographical status).
Conversely, Europe has a very liberal taxation regime for American corpos. That's why Ireland is the tax haven it is (same for Luxembourg and some others).
