The kind of appeal of internet services is that fact that they are in principle borderless.
But a country with enough buying power can mandate a regulation and force most of the service providers to create a separate space or even bend them to their will.
So any country with sufficient buying power and draconian anti freedom rules will always win.
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To a large extent I agree with you. If Hilary had got into office the US would just allow the EU to do this and pressure companies to do it as a matter of policy. But with Trump being President I don't see their being able to pressure them into it. The reason why I say that is because he'd could, and would, actually be able use section 230 of the Communications Decency Act to go after them if they did it. At that point it is clear the companies aren't impartial and are working for a foreign power. Being impartial is a requirement for the protections it affords them and they don't want to lose them. If they were to, then they are open to any and all civil and criminal liability of their users actions in regards to them.
Interesting I will have to read up on this. It is an area of knowledge which I am lacking in.
When they passed the Communications Decency Act the tech companies were the ones that really pushed for the protections in section 230.