It's the number one reason, why I am not upgrading and tell everyone who asks me, to not do it either. This law is so good, even its anticipation has environmental benefits.
The EU literally did mandate USB-A/plug + micro-USB (see https://en.wikipedia.org/wiki/Common_external_power_supply).
The successful development & widespread use of USB-C afterwards, culminating in this updated directive standardizing it, is a very neat demonstration that it didn't stifle innovation at all.
Surely there must be a difference between the old and the new law. And this difference can then still be stifling innovation.