"With this latest action, the saga of the dirty dozen is, once again, about to test the limits of the nation's copyright laws as they apply to the Internet. Internet Entertainment Group contends that the other Web site owners could be fined as much as $100,000 and handed jail terms of as long as five years."

What does "as" mean here?
in the way that
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Could the pronoun after "as" be dropped, so that "as they apply to" becomes "as apply to"?