Ironically the DMA is telling Apple to reduce privacy to make Apple Intelligence work in the EU, it’s just a populist political attempt at regulating a market.
No sane person actually thinks Apple isn’t private enough for EU standards, they’re just not being allowed to compete because they aren’t allowing anyone else access to local user context, which would be a privacy nightmare if done incorrectly.
If Apple can profitably provide AI services without breaking privacy laws but their competitors can't Apple wins.