Bizarrely enough, this is actually a big boost to consider an iPhone for me. Having everything on USB-C is such a convenience that it was my no. 1 reason to stay in the other ecosystem.
The EU literally did mandate USB-A/plug + micro-USB (see https://en.wikipedia.org/wiki/Common_external_power_supply).
The successful development & widespread use of USB-C afterwards, culminating in this updated directive standardizing it, is a very neat demonstration that it didn't stifle innovation at all.
Surely there must be a difference between the old and the new law. And this difference can then still be stifling innovation.