There are already a myriad of national difference you have to deal with, accounting rules, rules on corruption and bribes, which country has which patents etc. Privacy just seems like any other item on that list.
The company was helping Iran avoid sanctions?!
Imposing costs on their oil sector, including by banning trade with it, was a necessary part of preventing them from acquiring nuclear weapons. They only gave up the weapons program in return for relief from the sanctions.
However, helping Iran build nuclear weapons is a very serious, very consequential thing to be doing whether or not your country is officially participating in sanctions.
Would it be ok for your company to help Mexican drug cartels, even if it was legal? This is far more serious. If Iran obtained nuclear weapons, Norway would suffer the consequences too.
Regarding the data protection specifics, well, maybe it makes sense to follow the standards of the most rigid country globally?
The wild west manner of US-companies and government are really annoying, the mindset is - if I get my hand on the data it's my property. That is wrong, the user trusts "you" with it's data and expects it's usage only in the beforehand given consent for the necessary purposes. It's like copyright, the company has certain usage rights but does not own it.
The principles are easy: data processing has to be purposeful, lawful, fair and user rights and will is to be respected.
Have you really considered the implications of that precedent? Blasphemy law in Saudi Arabia. Censorship law in China.
Never mind what happens when the laws in two different countries conflict, e.g. privacy vs. data retention.
If there is profit to be had, the tech giants will figure it out. If there is no profit, then those countries with laws that are on the fringe will have to make do without, or change their laws to be more mainstream.
edit - I'm not implying that this is easy. Or, can't be made easier. Only that laws have varied by country for eons and merchants have always found a way to deal.
This is already part of a national debate going on whether we should allow America to define our moral codes and values.
If we throw in muslims world which are hundreds of millions of people, then this stuff is going to turn into a big mess. Since I don't live in the middle east, maybe it already is a mess.
"Brick and mortar" companies decide where to lay their bricks. You put a website on the internet and it's on the whole internet. In practice you can't even restrict who can access it, as Netflix can attest.
Suppose I don't agree with the laws in X country, or they conflict with the law in the country I'm physically in. Is it really going to satisfy anybody if I put "may not access this service from X country" in the terms of service somewhere, implement some fig leaf of a system to prevent access from there that everyone and their mother can bypass in five seconds (or the bypass ends up built into web browsers), and then millions of people from that country access it anyway?
How does that help anybody vs. just letting the service operate under the laws of the country where it physically exists and letting the users decide if they want to patronize a service that operates under that jurisdiction's laws? (Unless the goal is to increase the adoption of Tor and other anti-censorship software?)
We have a website that sells stuff. It is "not available" in Europe. We do not ship to Europe. We block email addresses with European domains and let them know we're not available. We attempt to block Europe ip addresses by geolocating and let them know we're not available in Europe. Yet people from Europe still slip in. We go through several steps to let them know we cannot handle their business, but they still get through.
Are we liable? Speaking generally, laws do not necessarily care about any mitigations we take. We could still be fined millions of dollars (more than our revenue) in certain countries despite doing our best to block them.
Sorry, but it's completely ridiculous.
(edited to be a little more clear after a cup of coffee)
The latter is likely much less practical in the real world, because our spy agencies don't really care where your data is, they're going to try and collect it, and the EU has made it clear that isn't okay with them.
In an ideal world, the United States and other major nations would all sign privacy laws as strong as the EU's. But I can't see that happening in our current political climate. Parties on both sides are more than happy to strip us of our privacy. And corporations oppose it as well.
The only reason why US companies are in trouble in Europe is because they use unethical practices that happen to still be legal in the US.
However, it was pretty obvious up front that those practices are unethical and illegal in most of the Western world.
So please, stop whining about the complexities of international businesses when the root cause is simply a lack of basic decency.
[1] The Gutenberg Galaxy, Marshall McLuhan