In the EU some companies simply cannot grow because of laws like that. They might want to grow, but can't because of laws that says if your company has more than X employees you suddenly have to deal with a bunch of extra bureaucracy and reporting requirements. These companies purposely stay small, and basically has stopped hiring, even if they could use more manpower.
Selective enforcement is a tyranny generator.
How about the law doesn’t exist if it doesn’t actually make sense?
Selective enforcement is just tyranny, but what I think they were getting at is a minimum size enshrined in law. I don't think it's a great idea, really highlights how arbitrary this all is and presents a risk of advantaging the worst actors more than real makers, but it's a valid way forward.
Laws like this are a good idea but its too burdensome for small companies so it cripples innovations and small businesses. Only applying it to larger companies let's it apply to only the companies who have the largest impact and also can afford compliance, while not stifling small businesses. Not perfect but I think it's a decent tradeoff.
The law makes sense, the details where things don't make sense
there are many federal laws in the US (and im sure other countries) that only apply when your company reaches a certain size. This is the most obvious way to balance regulatory burden on new companies while still enforcing regulations on large companies that have enough resources to comply.