Most won't. Remember that this is an issue almost noone (outside a certain bubble) is aware of.
Haha, huge, HUGE L-take. Go to any library or coffeeshop, and you'll see most students on their laptops are on ChatGPT. Do you think they won't immediately figure out how to use a VPN to move to the "better" models from the US or China if the EU regulations cripple the ones available in the EU?
EU's preemptive war on AI will be like the RIAA's war on music piracy. EU consumers will get their digital stuff one way or another, only EU's domestic products will just fall behind by not competing to create a equally good product that the consumers want.
Well, if there's not much difference why bother. If there are copyright restrictions on things people care about Europeans are perfectly capable of bypassing restrictions, like watching the ending of Game of Thrones etc.