This is a pretty generic statement and sounds like EU bashing without a good base. There are many things to critize the EU for, but calling them out for not intervening on a (discussable) law, that a single country has just pushed through is definitely not one of its weaknesses.
This one, sure. But Germany's had quite a lot of questionable laws to do with free speech for a long time.
e.g. If you're familiar with Steam, you might have noticed that a lot of games that are generally available in EU are not specifically in Germany.
The law has caught up with that a few decades ago (well before Steam). Pretty much all of those games can legally be advertised in Germany (sale to adults was always possible "under the counter"). For some reason the publishers are overcautious. Probably because none of them wants to see a headline "X has fought to allow swastikas and gore in games".
You mean the right to call groups of people hurtful things meant to insight violence?