Apple implemented a similar change for the EU App Store earlier this year to comply with the Digital Services Act (DSA), a regulation that now requires app developers to provide their “trader status” to submit new apps or app updates for distribution.
That is most apps - but not the kind of apps Google is attacking here (personal-scale, actually-free, third-party, etc.). And "apps that are not monetized" is actually a very nice thing to filter for from a user perspective.
Of course, the world's largest malware vendors love to use government action as an excuse to do something else malicious.