Technically the regulation says that charging is allowed, it just has to be the same flat fee across the entire SEPA zone, whether it's domestic or international. Most banks found domestic fees unpalatable, so they just made everything free. In this, as many other things when it comes to e-payments, Germany seems to be a bit of an outlier.

N26, a German bank, has unlimited free ATM withdrawals in most countries and only 3/mo in Germany.

If not for all the laws, this country would be USA on steroids.