Luckily for image generation they did not win. Different situation for LLMs though. You are correct that it would only entrench positions.

I am angry at EU legislation. While it was heavily involved in research, legislation are again on the course to fortify dominance of established big tech players. Probably because their interests often align with media interests, which have a huge influence on EU politics. And I do not mean the open and independent part of media, rather the established players that have direct business relations with huge tech firms.