I am amazed the EU is being more capitalistic and breaking up monopolies. WE should be doing that. This is how capitalism thrives. Break up large companies in different markets. Also break up Amazon and AWS already.
Your idea is flawed. If you split off AWS from Amazon, you have TWO monopolies. That's a useless move. What you need to do is split it down the middle: create Amazon 1 and Amazon 2 each with half the people, hardware, and 100% of the IP.