Apple will not react until it is punished, I think. Too big to be scared but also too big to notice that it’s actually in danger.
After a court order they will know exactly where the limits are and tiptoe them as much as possible. If they proactively try to be "overcompliant" they might loose more money in the long run.
It's messed up to be honest. I would prefer harsher punishments, but on the other hand if companies are scared all the time it might have a chilling economic effect so there is a balance to strike as well.
This is it. The law is ambiguous, and until someone specifies the line it makes no sense for either side to concede. Both Epic and Apple are multi-billion dollar companies taking maximalist positions.
There is also the shadow component of it being an open question—given the present state of European politics—as to which will outlast the other, Cupertino or Brussels.