I think we (in the EU) will soon realise the bizarre consequences of these regulations. European startups will not be able to use standard SaaS or PaaS tools (like AWS, Azure, Mailchimp, PayPal etc) if they are based in the US (like most of them are). No cloud services, no Office 365 or Google Workspace. It will take forever to build up a similar ecosystem in Europe and I think most successful European entrepreneurs…
Elsewhere "fragmentation" is called diversity and competition. It's sad that it has to come about due to regulation, but it's a good outcome nonetheless.
The familiarity and precedence of current offerings becomes a kind of Stockholm syndrome for people. More options mean more chance of valuable improvements, and geographical diversity means different mentalities and points of view, instead of more "me too" options.