Yeah, I like the general goal, but I worry about the corner cases; is an MMO “functional/playable” if you just release a localhost server? Are we forcing indie shops to pay for servers indefinitely now? Great way to ensure no more indie MMOs get built if that ends up being the text interpretation.
And, as you say, the question you should always be asking about EU legislation - how does this affect the small/medium shops’ competitiveness? Counterintuitively, compliance can hit the small guys relatively harder and entrench the big guys.
Not to say that we shouldn’t try to fix the problem. But agree that skepticism about EU regulations has some historical merit.