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They're calling it the JBLocaust www.bbc.com/news/articles/c3kg80ve7x0no

Nextcloud is a great choice if you want the EU to spy on you instead of the USG poster.place/nevent1qvzqqqqqqypzpqll3nws4xv5rp4plrzryf5e6vph

I expect them to be regulated into providing legal intercept capabilities because it's an EU company. This wouldn't affect on premise builds

If you're in the EU, it probably doesn't matter because they can just come to you. It's more for someone outside the EU hosting stuff in the EU and being affected by their laws. In a sense it's exactly the same problem the EU thought they were solving by requiring EU data stay in the EU, until the recent US law change (that they were probably illegally abusing beforehand anyway with complicit US companies).