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This would be the dumbest thing since brexit so it’s entirely possible that it’s true.
The EU is trying to do this at an EU level (and has been for years). As well as an individual country level, Sweden seems likely to pass a similar law in 2026.
https://www.theregister.com/2025/02/26/signal_will_withdraw_from_sweden/
https://www.wired.com/story/europe-break-encryption-leaked-document-csa-law/