My guess is that they saw that all happening but Epic provided them a letter saying they double pinky promised, cross their hearts, will obey by the rules this time, which Apple will later try to use in court later on. Otherwise it doesn’t seem worth the risk prompting clearly foreseeable regulator action.
Apple banned Epic the day before DMA came into effect when doing this sort of thing was still legal, they 100% saw this. They did probably bet on the chance EU would overlook it if they did it before the law came into effect, they lost that bet but they thought it was worth a try.
After all, legal advice can usually be summed up as “if you do anything, someone can fuck you”, and do nothing isn’t a good business strategy.
Legal doesn't make decisions like this. That's not what they are paid to do.
Legal advises the executives of the consequences of decisions like this.
And if there's one thing that you should expect from people in positions of incredible power (executives), it's that they often believe that they are immune to the consequences of their decisions.
Most of the time they are right. Sometimes, they are not.
It's entirely possible the regulator asked EPIC to make an assurance that they would comply with Apple's rules, which are legal under the DMA, and then told Apple they'd need to accept the assurance.
If EPIC does now pull a stunt like they did in the US, the EU will now have reason to treat them with suspicion, and Apple will be able to point to the assurance as evidence that they accepted Apple's rules.