Sounds like a pain in the ass things to regulate.
I do think it's a reasonable feature though. Some things you just can't get away (those few sites that won't allow you to delete your account on that place you registered on 10 years ago) and some things you just don't want people to see (if you blundered and put your real name on a site you should have just lied about it on).
I don't think it's really regulating the internet either in the sense that this is google search only and has no effect on the actual contents of the net and does not try to make it unsearchable in any way outside of google. And even so it's a fair regulation because you need to prove that it's you, both in terms of applying for it and the search result itself and it does not affect any specific site on it's own, because it's purely related to what can be found when searching a specific name.
As long as it's purely related to findings on a specific person, and not pages that happens to include the name of the person (like a company's about page with staff listing) then I don't see much of a innovation blocker or conspiracy theory shutting off the internet thing going on.
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