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The same was true for steam engines, they were not forbidden but the companies that only complained still went bankrupt.
The reason steam engines went went away was because of economics. Electric motors where more powerful, more efficient, fewer moving parts and less maintenance, can power up instantly and don't need to heat up a boiler for an hour before it's ready - so in short cheaper to run.
The problem I see with EVs in germany is that electricity costs are already high, and with extra fees on fast charging the price advantage is not there compared to petrol - at least not if you rely on public charging and don't have a solar roof at home.
An EV is at 15-20kWh/100km so with 0.3€/kWh we are talking 4.5-6€/100km. Average petrol car is at 7.7l/100km. With prices of 1.6€/l we are talking 12.3€/100km. So about twice as much as an EV for home charging. With fast charging it would be about the same. The electric motor being less problematic is also true against a combustion engine. It should last longer, if built properly.
Also the reason EVs are more expensive is that there is a lack of cheap batteries. We currently see a lot of factories being built. This means lower battery prices and therefore lower EV prices. Some of the offers of BYD and the like are already very good.
But the price difference is not so extreme that people would scrap their petrol car for an new 20000 Euro or more EV overnight. It's only important for people who drive a lot.
No, but it means that as soon as EVs and combustion engine cars cost the same, people will choose EVs. We are pretty close to that point.