Under what jurisdiction do they think that'll be possible?
You can connect to a server anywhere on the planet, the VPN doesn't need to have any legal presence in Italy. Hell, being in the EU means they can pay in their own currency and the VPN still has legally nothing to do with Italy
Regarding the DNS, I guess raspberry pi sales are about to get a boost in Italy
Can they do that inside the EU though? Wouldn't that violate the free travel of trade ? I don't think they can. Italians are free to use Swedish VPNs, which legally have no logs they can give to Italian police anyway, among which there's Mullvad. Italy can't stop italians from buying swedish things. Unless it's alcohol or tobacco, those things usually have exceptions.
But also, Mullvad accepts cryptocurrencies too. So it's not like they have to use banks. They even take mailed in cash.