I don't think this can /will be complied with by the small folk, UK Australia and EU can choose to fine those sites (idk how they do it outside jurisdiction) , or they can chose to ban them.
Which is fine by me, they can ban themselves and their citizens out of the free internet, they chose this.
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It will be interesting to see how it plays out.
It will be used as a tool most harshly against services that they do not like. And another barrier for anything new or disruptive to gain marketshare.
I could see them making the restrictions with big enough gaps that those who wish can slip through (like the faked face scans from videogames currently) but that still capture the masses into their compliance system.
Soon: "Before using this service please confirm that you are from on of the following countries: UK, USA, China, any EU country."
Problem solved. Then countries can ask ISP to block these service if they want/can but good luck enforcing that.