Pirated games, applications or hardware on your PC will be greeted with flags like as "unauthorised hardware peripheral devices." Microsoft can block you from using those on your Windows 10 computer.
Under the new clause 7b for Europe, under 'Updates to the Services or Software, and Changes to These Terms', reads:
"Sometimes you'll need software updates to keep using the Services. We may automatically check your version of the software and download software updates or configuration changes, including those that prevent you from accessing the Services, playing counterfeit games, or using unauthorized hardware peripheral devices. You may also be required to update the software to continue using the Services."
While you might think this is OK if you are using legit software and hardware you might be wrong. The wording around the hardware side is vague and there are questions about how Redmond decides what is "unauthorised."
It could also be given a list of files for movies that Big Content wants deleted from the Internet. We have seen how well that works on YouTube. Microsoft could end up deleting legit content because of a paperwork cock-up.
If you spend a fortune on something that Microsoft does not recognised you might be just a bit miffed.
Others are a bit cross that Microsoft will have to monitor every installation on Windows to carry out this service. Then there is the small matter of who is benefiting from this particular service because it is not Microsoft or the user.
Still there is no guarantee that this particular part of the licence will be enforced.