TLDR: Mozilla makes money from Google paying it to be the default search engine on Firefox. If that practice is outlawed, Mozilla will not have any income stream even close to replacing that.
They are focusing on things that are nothing to do with their core product, and have been acting so for a long time.
Mozilla is deeply unhealthy, and has been slowly collapsing for more than a decade at this point. I believe that the significant majority of its staff are doing things of no or negative value to Firefox.
I suspect that ten developers not beholden to Mozilla but with a mandate to make a good browser would be better custodians of Firefox. If you raised the budget to forty, I’m all but certain of it.
Oh wait ...
Would this apply to services offering to "promote" your post/listing to the top of the page. Like what is the legislation and logic here.