Geoblocking is common and if they are doing business in a country it's perfectly reasonable to expect them to do it as well as for the state taking measures to enforce non-compliance (though criminal liability of corporate executives is something we won't see anytime soon I guess).

What's not reasonable is to force them to block people in other countries (and also those taking significant efforts to conceal their identity) - at least there is no international law (compared to international deals) justifying that anyhow.