Apple's concern is at the intersection of DMA and privacy. Apple is worried that other parties having the same level of data access that Apple has today would create privacy issues. This is because Apple's current privacy posture is "Trust Apple with your data" rather than "Trust no one with your data - including Apple", but that would be less profitable, but would have prevented the request for an exception because Apple would be on an equal footing with everyone else, if all they could see was client-encrypted data indistinguishable from random bytes.

So Apple doesn't want to compete? Cry me a river.

I could almost feel sympathy if it were something to do with some contract that Apple signed with their AI provider. Who's that, Google?

Ahh, a "competitor"? Yeah... cry me a river.