Do you even understand it, where this is applicable?
Yes I do. I work with couple of semi-conductor manufacturer on a daily basis and participated in events covering the subject and I sit on tons of documentation covering it.
Well, isn't that what has happened already as a whole in the EU? A lot of smaller companies shutting down and the large ones thriving? (Asking for a friend.)
Now, on the bright side, if that can limit the appeal to make IoT devices all over the place, that's a bonus in my book. There are just too many of these, often for no good reason. But, here again, I don't really think the fact that only the big ones will be able to afford it is a good thing either for consumers.
But yes, if that can make companies think twice before turning every little product into something connected to the Internet, that's not necessarily a bad thing from that perspective.
I can't agree more, yes to the EU point, and yes a lot of useless connected products popup every single day, it's extremely annoying to see a lot of companies just throwing money on useless devices and ideas.
However, consequence of my job, I know a lot of small compagnies (in France mainly) with a single role as supplier that orbit around big compagnies such in railway (sncf). So yes, there is a lot of noise in the market but there is also a lot of single, niche applications, some even with single customer.
An other perspective is when looking at history, Innovation is a result of trial and error, limiting the opportunity to create by regulation is limiting the opportunity to innovate. This will also limit competition possibilities and will shift the market in favor of couple of providers that will shape the market and force the prices.
This will not stop people from coming up with connected stuff, just it will be created and even certified elsewhere, for instance certification costs are lower in China, and the equivalent standard in the US is not mandatory (As far as I know), so companies will either produce, certify or even shift their market to outside of the EU