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> In order not to hamper innovation or research, free and open-source software developed or supplied outside the course of a commercial activity should not be covered by this Regulation. This is in particular the case for software, including its source code and modified versions, that is openly shared and freely accessible, usable, modifiable and redistributable. In the context of software, a commercial activity might be characterized not only by charging a price for a product, but also by charging a price for technical support services, by providing a software platform through which the manufacturer monetises other services, or by the use of personal data for reasons other than exclusively for improving the security, compatibility or interoperability of the software.
This sounds sane-ish, but it the key is that it says Open Source Software is not exempted if it is part of commercial activity.
So what is commercial activity?
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> 'making available on the market' means any supply of a product with digital elements for distribution or use on the Union market in the course of a commercial activity, whether in return for payment or free of charge
That "free of charge" connected with "commercial activity" is what has people up in arms.
Does it include free stuff like Debian? Does it include donation-based FOSS like Zig?
These are the things that worry people.
[1]: https://eur-lex.europa.eu/resource.html?uri=cellar:864f472b-...