Every ease in regulation will immediately be exploited by the foreign monopolies, without a guarantee that it will spawn local competition.

The only guaranteed path is to ban the foreign competition. Like China, Russia, etc.

Needles to say, this is not how EU wants to operate in most cases.

regulation that makes sure every paltform, foreign or domestic is open and competitive is vastly preferable to national oligarchies. Of course not to people to which this is some strange dick measuring contest but to people who want to maximize consumer choice and welfare.