No, this is unrelated from privacy. The issue is that the EU won’t allow the new Siri because Apple isn’t willing to open up the system enough for 3rd party AI agents to get the same functionality.
Functionally the EU is requiring that Apple dramatically RELAX their privacy and security postures.
I’m sure Apple doesn’t want to cave and give OpenAI free access to the spotlight semantic db, the ability see what’s on your screen at all times, etc.
Which I would argue is HARDER to do while preserving privacy.
Because Siri is the brand and other competitors will dilute the brand with their inferior products, is the line of reasoning, I'm sure. I'm unclear on why apple is branding the AI launcher or whatever if it's just going to be a wrapper for a third party product, however.