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That’s really hard to answer definitively without context. Obvs there’s the kernel, but that’s similar enough across distros that it’s not really a point of contention that I know of. At a guess it might mean the distro it’s “based” on, but that in itself could mean a few different things. There’s stuff like package management, which you mentioned, and init style. That’s where things get complicated.
Like, Mint is based on Ubuntu, which itself is based on Debian. They share DEB / APT for package management and use systemd for init. OTOH, there’s stuff like OpenSuse, which is originally based on SlackWare, but uses RPM (like redhat) for package management. OpenSuse uses systemd, but I think RedHat uses upstart and SlackWare uses a BSD-style init. It’s been a while since I checked in on those last two.
Of course they could also mean something like choice of desktop environment (as in “A Gnome-based distribution”), default package selection (what the installer refers to as a “base” install). They could mean the general philosophy or release schedule (rolling vs. point release). Or they could even be referring to the userbase (as in; “I use Arch, btw”).
Suppliers should be paid fairly, and I’m glad the fines actually seem meaningful (in theory, anyway; those are maximum penalties. I doubt they’ll actually get applied any time soon). It won’t help the average consumer tho.
Supermarkets here use their position as middlemen to squeeze both ends of the supply chain; they short their suppliers and price gouge their customers. The code of conduct only fixes one side of this. It applies purely to dealings with suppliers, and has nothing to do with retail pricing.
It’s more likely retail prices will increase to maintain the profit margin. Line must go up and the plebs just have to suck it.