This reminds me of the Gaia-X / IDSA certification and approval framework blanketing the whole software industry in the EU. I am not sure yet what to think about it.
On one side, it looks a bit like proprietary software vendors trying to cut out SMEs who can match the quality with the same open-source software the big players use, but have no funds to go through the certification. The really funny part of this legislation is: the big players who can afford certification will be able to use ANY open-source component for free but the people who built it will have a tough time to go to the market because they will require the funds they don't necessarily have. Crazy situation.
On the other hand, if this is applied to everyone, well, it will get rolled into the cost of providing a service. You want to buy this from me? Sure, I'll charge you for compliance report.
The really funny part of the "Call for evidence for an impact assessment - Ares(2022)1955751" document (section C.) from https://ec.europa.eu/info/law/better-regulation/have-your-sa... reads:
> The initiative is expected to have positive economic impacts.
That section completely misses to mention that increased compliance cost will inevitably lead to increased software and services pricing, thus will lead to decreased competitiveness of European SMEs on the international market.
Hot take: I can see two options to cripple this: 1) Drown the legislator in compliance requests for minor code. 2) Dual-licensing: AGPLv3 + commercial license.