It hurts small providers more than anything. My main fediverse instance has locked everything down in fear of retaliation. They might be paranoid, but at the same time I don’t blame them. Not to mention, the smaller providers will find it harder if not impossible to fund for compliance with this. It ironically makes Big Tech stronger.
Oddly enough, another site I frequent - Rate Your Music - separated the main site and the forums at the same time. They blame it on “technology companies”, I wouldn’t be surprised if it was this exact bill and Ofcom that forced their hands.