There is no major european internet company worth speaking about, so I think they probably don't care if it irreparable damages their own local companies in the process of damaging the foreign ones since they are virtually non existent anyhow.
Ironically the foreign big ones have enough resources to comply to the law, small local ones don't and will die/never be created in the first place.
> the regulating authorities can pick whoever they want to prosecute
It doesn't really work that way, at least not in germany, anyone can just sue (or threaten to sue) their competition over this (they already started) there is no such thing as this mythical benevolent authority who could stop this wanton destruction you are talking about.