Being free doesn't mean being above the law! Each PeerTube hosting provider can decide on its own general conditions of use, abiding by their local laws.
The difference to YouTube is that it's not intended to create a huge platform centralizing videos from the whole world on a single server farm (which is horribly expensive).
For example, in September 2021, the 900 platforms listed on our <a target="_blank" rel="noopener noreferrer" href="https://instances.joinpeertube.org/instances">public index</a>host only ~1% videos tagged as containing sensitive content.
For example, in France, discriminatory content <a target="_blank" rel="noopener noreferrer" href="https://fr.wikipedia.org/wiki/Lois_contre_le_racisme_et_les_discours_de_haine">is prohibited</a> and may be reported to authorities. PeerTube allows users to report problematic videos, and administrator must then apply its moderation in accordance with its terms and conditions and the law.
Read the <a target="_blank" rel="noopener noreferrer" href="https://docs.joinpeertube.org/maintain/configuration#scalability">scalability guide</a> if youplan to have many users or viewers