Fair enough but thats not up to cloudflare to decide, if they operate in the country they must respect its laws
Getting a fine is the first step towards further judicial review, probably.
Italy and Europe do not have the right to censor the internet for the rest of the world.
Cloudflare is not "arrogant" to threaten pulling out of Italy if fined 2x their revenue in the country.
I would argue that "arrogance" is some tiny vacation destination thinking they can censor the planet ;)