Regardless of the titles of the regulations or the justifications offered, this is a prime example of gov't choosing winners and losers. This is the very definition of statism ala Germany in the 30's and 40's.

It will absolutely affect a business model! Brand recognition is a major component of any marketing effort. If they have to abandon their brand what's the point?! I have seen first hand the futility of these types of efforts that are doomed to long term failure. Bad idea!