Earlier quoted context omitted.
While I am in the camp of apple allowing side-loading, i am not a fan of monopolistic regulations like this. It opens all kind of questions, like 1. What devices have to comply? 2. Who decides what device has to comply? Should playstation open their system too. What about a niche bank transaction signing device that internally uses an android capable hardware. Is this illegal now? 3. What about a car infotainment sys…
Most of these rules apply only to companies above a certain size, both in number of users and revenue. Those get classified as "digital gatekeepers" and they are the companies that have to comply with extra requirements. So no, this will not affect startups and harm innovation, it will just force the monopolistic behemoths to play nice and cease actively harming innovation.
Further it seems more like a moat to keep anyone else from getting as big as these "digital gatekeepers" are as suddenly when you get to a certain size you have an enormous expense.
If these companies really are that large that they have to get special laws for them isnt the solution to dissolve their monopoly and split the company up instead of starting to create separate classes of laws.