If a company choses Cloudflare they would have great service everywhere except Italy. If they chose a service with lower quality / reach, they will suffer degraded service across the board. If they try to use more than one CDN that’s a lot of hassle.

It’s not clear which way the decisions will go in reality. Past experience suggests that tech companies eventually accommodate local laws, trading complexity of explaining this to customers for complexity of implementing targeted blocking tools.

A lot depends on the next couple of months and the US's continued belligerence against - former? - allies. If that isn't toned down, and drastically so then I expect there to be many more consequences than just for CDN providers.