Hungary has long clashed with EU laws and values, namely freedom of expression and the establishment of an independent judiciary. This law deserves the highest level of scrutiny, as it will likely be used to monitor and suppress Hungarian citizens and businesses who don't toe the party line. The EU will be forced to step in and protect them if Hungary continues to move toward undemocratic policies.
Hungary seems to be operating under a double standard, as the EU never punishes Western countries, even when they commit egregious human rights violations. Other countries seem to go unscathed because they're willing to comply in addition to claiming to have similar views on certain issues, including gender ideology, immigration, and war. The EU should stay out of Hungary's business.