As far as I can tell this basically means that all apps must be approved by Apple to follow their “platform policies for security and privacy” even if publishing on a third party app store. They will also disable updating apps from third party app stores if you stay outside the EU for too long (even if you are a citizen of an EU country, with an Apple account set to the EU region).
The idea that preventing app updates is in line with their claims of protecting security is utterly absurd. “Never attibute to malice what can be explained with stupidity,” but Apple isn’t stupid.
Each big company should open its own app store in the EU making the use of iPhone impossible there. People will switch to Android pretty quickly.
If people want Facebook, they need to install the meta store and then install Facebook. A Google product? Install the Google store and then the app. Want Spotify? Install the Spotify store and then Spotify. TikTok? TikTok store and then TikTok…