Android shouldn't be considered Open Source anymore, since source code is published in batches and only part of the system is open, with more and more apps going behind the Google ecosystem itself.
Maybe it's time for a third large phone OS, whether it comes from China getting fed up with the US and Google's shenanigans (Huawei has HarmonyOS but it's not open) or some "GNU/Linux" touch version that has a serious ecosystem. Especially when more and more apps and services are "mobile-first" or "mobile-only" like banking.
I see where you're coming from, but companies like Google have local legal representation (e.g. in Ireland for the EU), and have to operate under EU rules if they want to do business here (just like how a EU business has to operate under US rules). If the EU says that you should be allowed to do your own thing - and they have - then Google can either comply or leave.
Don't attribute more power to companies than they have - they want you to believe they can get away with this, but don't echo their rhetoric.