It prohibits both commercial use, whether or not you break regional laws; and it prohibits breaking certain laws. As another user said, encoding the law into a licence is pointless but makes it non-free.
There are also problematic restrictions on your ability to modify the software under clause 2(c). And nor do you have the right to sublicence, it's not clear to me what rights somebody has if you give them a copy.
Ah I guess I read it right then I reread it wrong, my bad and thanks for the pointer! That's a shame but hopefully it's released in a more open way in the future. My interest is in building good collaborative interfaces (and games!) on top of these things.
There are also problematic restrictions on your ability to modify the software under clause 2(c). And nor do you have the right to sublicence, it's not clear to me what rights somebody has if you give them a copy.