Quick thought experiment: would you still disagree location-dependent compensation if they opened a physical office in your region, and priced their offers according to the local market?
Companies that have physical offices in multiple regions naturally adjust compensation levels depending on the local talent market. Why should it be any different for remote companies where the only difference is no physical office?
edit: I mean have an office and require to work from there. Companies which have an office and offer remote are naturally at a disadvantage here in the same way, though having an office may help offset the disadvantage (some people don't want to work remotely, having an office to go to from time to time and talk to people, meetings, integration parties, other benefits)
edit2: I've also just checked their rates, and for my region they are at best average even accounting for local market prices. So I don't see how they have an attractive offer in any way.
Can't speak for the parent but I live in a city where plenty of tech companies have physical offices, and all of them pay jack-shit relative to the national market.
I don't know if I agree or disagree with it, but I certainly won't be applying with any of them. The same thing goes for GitLab.