The exact same thing is implemented in Germany already (DNS-level block), and I did not see Cloudflare CEO rage posting on Twitter about it.

"you must block things in germany after it goes through a formal government process" versus "you must block things globally even for places not subject to italian law because an italian media company doesn't like it"

There's more than a subtle difference betweeen the two.

Has Germany tried to fine Cloudflare over it?

Because the German law only harms Germans, whereas the Italian law in question demands global bans.

I'm in Germany and Cloudflare DNS doesn't Block eg Annas Archive for me, while my ISP does. I also don't reckon Germany tried to fine Cloudflare yet. So what is your point?