The point was that it's usually said in a derogatory fashion, insinuating that European innovation suffers as a result of this.

Those also aren't strictly tied together. I absolutely believe that EU's internet regulations make it less desirable to start interesting new internet companies there. In many cases, I would also gladly trade that for the benefits of being an individual living under such a system.

Indeed, but again the point is that it's usually said, so as to imply that the EU suffers from these policies.

Whether or not that's actually the case is a different question. To your point, it's a much less cut-and-dry question as well.