I really don't get this kind of bans. When I connect to a service in the US, my bits are traveling there. Italy "banning" ChatGPT (whatever it means) is like preventing me from getting high in Amsterdam because, as an Italian citizen, I should not be allowed to.. Never got it, and never will.
In economics this is called "createtive destruction" [0]. Basically it's the freedom of messing up someone else's business by creating something better. Think e-mail destroying most jobs for mail delivery or digital photos destroying photo development shops.
One of the hallmarks of lesser developed economies is that they do not allow these kind of things. What happens in stead is that the people that have a lot to lose will use their political power to stop the innovation from happening.
The more common practise this is in a country, the less developed the economy is usually. Because this partly destroys the incentive to innovate.
So basically a lot of powerful people in Italy are pretty scared for their jobs / income because of the rapid innovation in Large Language Models.