Free markets aren't always good at pricing things. For example highways wouldn't get built because of the holdout problem if there wasn't eminent domain.

There is also such thing as inalienable rights: the ability to sell yourself into slavery probably should be banned, even though libertarian agents seemingly should know the value of their own freedom.

But it also seems evident in this regulation that no one is doing that calculus. Everyone is clear on "with this regulation we gain X", but only a small fraction of people seem to be thinking "and then, people will behave in Y way and we lose Z".

With many US regulations, there are public comment periods, and those comments are summarized and published. At least when many regulations pass, people know the potential downsides. Can anyone link to the EU equivalent of this? What has the EU parliament office said about the pros and cons?