This is not something new. It's been an issue in international legal frameworks since countries had laws.

Here's a decent overview: https://columbialawreview.org/content/international-comity-i...

The critical thing to realize is that countries are not bound by other countries' laws, only by agreements they make with each other (or ones which are militarily forced on them).

Given that this flies in the face of the traditional US approach to extraterritoriality, and the EU is implementing GDPR, I'd be very surprised if this weren't heavily circumscribed in the future.