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Firefox has a lot of issues, but maybe we don't have any other option.
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I think it's the other way around, Android has to ask you what you want your default browser (and search engine?) to be, but if you choose Firefox, it will still have Google as its default search engine.
Firefox's marketshare isn't big enough to count as a gatekeeper, I don't think.
I'm not in the EU, but I have Firefox set as my default browser on Android and it works fine.
Ah yes, maybe you are right.
Come to think of it, I only saw this on Safari, Android and Edge, and they are all gatekeepers.