The "arms-length consulting" is absolutely illegal in the US, I'm surprised that it doesn't seem to be that way for the EU.
I guess people just don't know that that it's just as illegal, or feel it's less objectionable than paying bribes directly. Or they speculate that it's harder to prove.
It also create an uneven playing field. Western countries can't do business in large part of the world, while companies from those same countries are free to sell anywhere.
If you did, sanctioned countries wouldn't be a thing.
'I want to make money' isn't some kind of first, last, or sole moral consideration, overriding all others.