First of all: kudos to Oz!

Better late than never. And this is very late.

IIRC Europe was on this as well e.g. Meloni regarding OpenAI.

Now that governments are banning remote LLMs controlled by authoritarian governments by proxy (CN, USA) it is time for companies to realize they shouldn't do that either.

The alternative? On-prem open models. Performance a little lower? Too bad, it ain't worth the risk. A privacy officer can value the risk, but that would be a case by case scenario and is expensive employee (lawyer), so not worth the effort.

Don't do it. You'll be liable.