It should, but what does the law say?
In Greece for example, it is illegal to serve baby seafood of many species, following the over-fishing in the Mediterranean.
So, is it illegal in Italy to serve baby seafood?
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No it is not illegal.
Octopus are not subject to EU quotas and there is no minimum landing size. https://www.mcsuk.org/goodfishguide/search?name=Octopus,%20Lesser
It is not unusual in Italy to eat baby octopus.