The EU should bring their own licensees into compliance first.
The reason why Netflix doesn’t have a single library for the EU is because EU licensees claim rights in various countries both on the original content as well as on localization via dubbing and subtitles.
This isn’t on Netflix it would be far cheaper for them to have a single world wide license for the majority of their content rather than having to negotiate regional deals.
And not for nothing but the EU geo blocking directive explicitly does not cover audio-visual content and they’ve voted against extending it just at the beginning of this year after heavy lobbying by EU media companies especially those in sports.
So it is perfectly legal to geo block both on demand audio-visual content and live broadcasts within in the EU.
No, they really do not. At most, they can decide "in EU" vs not.
If Apple allows anything more fine-grained, they are violating EU law.