The law is a bad one: it criminalizes certain speech, which is already problematic. The problems go much deeper than that, though. Instead of targeting German citizens who post illegal speech, the government targets American social media platforms, demanding the removal of illegal posts in less than 24 hours on the pain of up to €50m fines. On top of that, employees of service providers tasked with removals can also be fined €5m personally for not reacting fast enough to government demands.
So, it's bad. And determining what is or isn't illegal is in the eyes of government beholders. Faced with the prospect of expensive fines, Twitter, Facebook, etc. are probably not going to be second-guessing many government requests for content deletion. Worse, it's going to encourage service providers to be proactive, amplifying the underlying vagueness of the German "hate speech" law. False positives are a given. We just didn't expect the collateral damage to occur so quickly.
Comment: Despite claims to the contrary, the vague wording of these laws effectively shuts down any criticism of the government's official narrative - exactly as intended!