The "EU" as a market is only important to the largest players or as an after thought once you have a solid footing in e.g. the US for one simple reason. The EU has too many languages so you can't just target the entire population in one shot like you can in single language even larger economy in America. Even if you wanted to target the entire EU, in my personal experience I can tell you that some web services work well in a place like Germany yet fail hard in France so most small to mid-level players are only going to go in places where they make the most money and it may be years before they ever end up in say Italy or the Netherlands. All that adds up to the EU regulations having a much smaller impact on most startups than you seem to believe. And that impact will be zero on the ones who look at the regulatory landscape as it exists now and just decide to stay out.
Edit: I see somebody chose to express disagreement via mouse rather than keyboard. Interesting.