This type of law encourages that very centralization. Look at the provisions of GDPR, for example. Do you think a two-person startup is going to have the resources to deal with all of its provisions? Or in this case: do you think that a new video-sharing startup is going to have the resources to deal with the more stringent copyright enforcement requirements?
The EU has, in effect, made a Faustian bargain with Google, Facebook and Twitter: if you accept our regulation, we'll ensure that you have no competitors.