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The problem is that SMS is nowadays a poor fallback, lacking support for a number of widespread features that are part of the EU's required baseline for interoperability.

Why is it a poor fallback? It supports less but mostly it’s a message size limitation. This seems like exactly what they want.

The DMA requires interoperability without a decrease in security - this explicitly includes end-to-end encryption, which iMessage supports. Since SMS has no standard for key distribution/discovery, it already fails at that hurdle.

It also requires that features such as group messaging and audio/video calling.

So, let me get this straight -- the EU is now requiring end to end encryption? Haven't they been harping this whole time on how that enables child predators?

That's a feature of the Messages app, not the iMessage service.

I cannot send SMS from iMessage on my iPad, or a Macbook if I had one.

Why? I send SMS from my MacBook and iPad every day.

I don't have an iPhone.