These restriction include what tournaments can charge, how mamy entrants an event can have, how much an org can make per event or per year and it also gives them the right to cancel any event for any reason.
This seems like another attempt at nintendo to kill the competitve scenes. It basically kills melee and pm outright, since neither is played unmodded.
So far its UK only but theyre definitely going to make this standard everywhere. I hope its unenforceable.
Nintendo really does hate it's fans and customers like no one else.