But it doesn't have to be, you can simply NOT regulate every damn little thing, especially when there are no victims and you are forbidding a simple trade between two entities who are both willing to engage.
No, developers who want to make money on the Apple Store are not victims. They can develop for Linux and sell apps there if they don't want to pay what Apple wants.
I'm one of them, I'm not supporting Apple or Google and I build everything on the web paying nothing.
Maybe the simple answer is that PWAs and using web technology has never been good enough?
In the history of computing, cross platform GUI apps have always sucked compared to native apps.
Despite what Adobe said when the iPhone first came out, there was no way that Flash was ever going to run on the first generation iPhone. It had only 128MB RAM and 400 MHz processor. When Flash finally came to Mobile in late 2010 on Android, it required 1GB RAM and 1Ghz processor. An iPhone with those specs didn’t come out until 2011.
Heck Safari could barely run on the first iPhone, it would do checkerboards until rendering could catch up with the scrolling.
And if you remember Apple’s cross platform Windows apps - iTunes, QuickTime and the short lived Safari, they also looked very bad on Windows.
Both Google and Facebook at different times said they are moving away from cross platform frameworks and web based technologies for iOS to more native software. Google has all but abandoned their cross platform mobile framework.
Full apps on the other hand have many more ways to fingerprint users which aren’t as well known, such as “your free storage, your current volume level (to 3 decimal points) and even your battery level (to 15 decimal points)”. (https://www.washingtonpost.com/technology/2021/09/23/iphone-...)
Is one conclusively better than the other? I’m not sure, but web tracking and fingerprinting is still much more studied and users have more countermeasures, including using a different device where the user has more control.
https://developer.mozilla.org/en-US/docs/Web/API/Battery_Sta...
Web audio api
https://developer.mozilla.org/en-US/docs/Web/API/Web_Audio_A...
And consumers spoke, and now other consumers unhappy with those consumers choices, are demanding the deal be changed.