It’s like they are trying to irritate people into canceling their accounts.
Imo, this one might actually be worse than the account sharing and cause people to quit. As soon as you have people messing around with their subscription version, it’s all too easy to just say “nah, I actually don’t want this anymore”.
That law is in effect in Europe since a long time ago (in fact is thanks to that law that netflix carries so much non north-american content) and netflix didn’t remove any tiers.
Only some European countries like France, UK never had that law.