Naturally there was a lot of backlash, and so Apple reversed their decision and will continue to support PWAs with WebKit in the EU. This suggests that perhaps the European Commission told Apple that it was okay to do this as it does seem to violate the "don't prioritize your own browser" rule, but as of the last I saw on this it was still unclear.
It's a system level feature and uses the system provided web engine.
Microsoft doesn't let you swap out EdgeHTML or Trident for applications that use the native OS web frame.
But apps shouldn't be forced to use that web frame is the issue the commission had and the DMA attempts to resolve.
I remember quite clearly a gecko (firefox) implementation of the trident COM interface
But the system still needed a WebView for when Play Services were not available, so they made a way to toggle between them.
Rubbish. The DMA became law in November 1st 2022. A trillion(!)-dollar corporation had approximately a year and a half to work this out.
Maybe there were behind the scenes concessions made and I'm completely wrong, in which case I owe Apple management an apology. But my impression as an outsider is that there is no real strategy here; executives at the company seem to be throwing their weight around and picking fights at random, getting slapped down, and immediately retreating.
If you are flexing your muscles and end up loosing, you are probably loosing your jobs, because shareholders and everyone else will be angry with you