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Literally no one is going to get arrested for installing Arch Linux.

... because they won't be able to, because the project will have been shut down.

Afaik Arch isn't German, so why would it be shut down?

This is part of a wave of similar bullshit worldwide. And we have a bunch of countries trying to enforce their bullshit extraterritorially.

Also, your lack of concern for any people or projects who may happen to actually be German is... disturbing.

No it won't