Apple didn't give itself better dialogs. It never did third-party tracking across across apps or websites so the ATT prompt would never apply to their apps. It also voluntarily showed a dialog explicitly asking you to opt into personalized advertising. Facebook doesn't show anything similar when you use Instagram or the Facebook app, because that would be undoubtedly bad for business.

The German regulator settled because the facts are simply on Apple's side. Apple settled because at the end of the day it's no skin off their back if the EU now wants to weaken privacy protections to benefit ad-tech.

EDIT: You can downvote me all you like, but it's right there on page 1 of the FAQ from the regulator. https://www.bundeskartellamt.de/SharedDocs/Publikation/EN/Pr...