This is accurate; for instance, a Dutch court fined Electronic Arts (EA) 10 million Euros for all the lootboxing they did, with an additional 600K/week if they continued. Belgium went even further and slapped them with a 800K fine and threatened five years' jail time for the company officers.
The EU is most assuredly not playing around with this, and LL does not have that kind of cashflow. They'd get torn to pieces like a jock in a zombie movie.