no way. any service provider whose main demographic/target audience lie in europe will not simply pack up. they might as well declare bankruptcy at that point. we have one of the largest ISPs in the world in the nordic countries; they're not going to seize their operations over something like this.

i could only see entities outside of EU who do not make much money from EU withdrawing their services.

for example, a lot of news articles and such from the US preemptively blocked access to EU browsers to 'avoid the legalese swamp' (and to make a message, i guess); newspapers like the tampa bay, florida times, that very clearly have their target audience in the US. but what about US newspapers that are more global or that do target EU? for example The Guardian, The Times, etc: they haven't shut off access. neither will they ever do. why? money.

so, any service provider currently making money of EU will not back out just because of regulations. it would be a career killer that makes no sense.

for a moment, just imagine how many concessions huge corporations like blizzard and valve are making to the chinese just to be able to sell their games there. a lot of corporations even sell enough shares to Tencent (a chinese company) simply because they cannot ignore the customers of china, and Tencent is the cheapest way to tap into that market.

i think the idea that these regulations from the EU will stop internet traffic entirely are completely baseless and shows a lack of understanding for internet censorship and control.