Didn't Epic Games violate the app store ToS a while back? I'm not a fan of Apple but it still seems reasonable to me to terminate a developer account for breaking ToS
Apple could easily resolve this by just removing their their bogus constraints around the requirements for launching a competing app store on iOS. After that they could probably keep Epic banned all they want from the main App Store based on future ToS violations. (Though with the caveat that the ToS would need to be reasonable, and it seems clear that Apple has no intent of making a reasonable ToS unless forced).
But they're not going to do that, are they? None of Apple's restrictions were about security or user safety, they were always intended as an exclusionary measures, to make sure nobody can launch a viable competing store. When it looked like Epic was going to do it despite the ridiculous business terms, Apple reached for the next excuse in their toolbox.
Violating some company's ToS is completely irrelevant when it comes to actual laws.
And more importantly, it makes no sense that Epic has to interact with Apple at all in order to sell software to owners of Apple products. Apple has implemented systems which makes this very hard or impossible for non-expert users. Which means Apple violates basic principles of ownership.
Apple has the responsibility to safeguard apps delivered by its own store, but it will be each third party store responsibility to do the same while also complying to EU laws.