This is worrying as a censorship tool
On the one hand, you could say it will only block the uploading of protected content, as that's what it's meant to do.
The question is how protected content is defined, now and in the future. For now, it's copyrighted works, but it might be other things in the near future.
This will effectively work as a previous censorship system, and democratic societies have traditionally allowed works to be publish leaving courts to decide later on its legality (if challenged).
And even when talking of copyrighted works, the system probably won't be able to make a distinction between illegitimate and fair use. Will there be an appeal system?
Worse yet, if we take a look at Hungary (just an example), who have just made it against the law to help illegal immigrants ask for asylum. They could say that any literature on that subject is illegal to upload and apply filters on the matter.
This goes along worrying trends we’re seeing/experiencing in Europe...