It doesn't have to be a lie to be a poor excuse. The technical limitations could be something along the lines of they couldn't find a way to provide an app that wouldn't allow third parties to bypass apple gatekeeping of apple watches. Technically truthful, but in an antitrust context maybe less of a valid reasoning, but still allows them to redirect the public narrative.
Edit: Sounds like it was about privacy concerns, so probably something like there not being a completely foolproof way of preventing a third party from grabbing health data from the android app.
Edit: Sounds like it was about privacy concerns, so probably something like there not being a completely foolproof way of preventing a third party from grabbing health data from the android app.