It has nothing to do with the EU laws, or at least not in the sense they want you to think about it: no laws prevents AI players to release their AI models here, but they are all also big tech players who are affected by GDPR, DSA and DMA which harm their business by protecting the consumers.
That's why they use their AI products as a leverage to turn European people against the laws that protect them from big tech. It's just blackmail.