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No, the EU didn't like MS having their malware protection in kernel while kicking out third parties.

If Defender was also kicked out, it would have been fine, but it wasn't.

> Microsoft tried to do exactly this for security software in Windows

Using a monopoly in one industry to capture the market in another industry is what anti monopoly laws are meant to prevent.

Microsoft was prevented because they wanted to retain a commercial business in their security products having special access while locking out everyone else.

I really, really wish Microsoft would force third parties out of the kernel.

They can. They just have to have the same rules for their products in that space.