The institution that forced this through is the EU Council, the body that represents national governments and is composed of heads of government.
The reason they have to force it through and couldn't do 2.0 is because the EU Parliament stopped them.
In other words, it's the nation states that want this and the EU institutions that are blocking it, not the other way around as often framed online.
If not for the EU, a much worse version of this would already be law in the nation states.
You can see this play out in real-time in the UK, which has gone real dystopian ever since Brexit.