If you actually read the thing it’s fine. It just requires phone manufacturers include a parental control function that is CAPABLE of those limits built in without charging extra for it. The parents still have to turn it on and can exempt apps from it or not set it up at all.
The most “authoritarian” part is online services with recommendations are “encouraged” (not actually required) to set up separate age algorithms. Algo for 3 year olds they recommend to be mostly audio and not ADHD video, algo for 8 year olds educational only, 12 year olds “positive” entertainment, 16 year olds “age appropriate”. And they want app store recommendations to not advertise lootbox games at kids.