Yes it is, and no they didn't. Apple has to allow (heavily restricted) alternative app stores, and I'm not clear on whether any actually exist right now.

My understanding is that how Apple is restricting the alternative app stores is also illegal in EU, so I don't thinkt this is the end of this story.

It's almost two years and they are still doing it. So they are moving mighty slow if that is the case.

Yes, these things move slowly, but they do move =)