Importantly the EU here is not trying to dictate how X behaves outside the EU. Only how it interacts with people in the EU. Seems fair enough to me that if you

Importantly the EU here is not trying to dictate how X behaves outside the EU. Only how it interacts with people in the EU. Seems fair enough to me that if you open a store front somewhere the local government gets to lay down the law on how to run that store front.