As someone who relies a lot on the Watch (especially now that WhatsApp works locally on it), I’d say we have officially reached the point where Apple is on the verge of actively harming their user experience for no good reason whatsoever. I honestly don’t know if this is bull-headedness or malicious compliance.
On the other hand, someone at the EU clearly prefers being in the limelight by regulating against evil US corporations in ways that affect very small parts of the general population rather than, say, go after Asian smart TV manufacturers that are present in millions of homes and resell data on European’s TV watching habits.