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The regulation has blatant loopholes, as usual. While it did force Apple to allow third party app stores, all apps still have to go through a review process by Apple themselves before they can be installed from any source, and they retain the ability to block any apps they don't approve of. Google is just following in their footsteps.

https://support.apple.com/en-us/118110#notarization

Alternate app stores are still allowed. It's just that they are restricted to applications signed by developers who have paid a tithe to Google.

Google are obeying the letter of the law, while openly violating its spirit. Perhaps it'll be possible to attack them in court, but it will take years, and by that time they'll have found another trick.

this change makes Android more restricted than it was but still not as restricted as Apple. If anything I'd guess the EU vs Apple situation made Google more confident that they could get away with this change.