Tiktok is the exception that proves the rule .
as long as ads money gravy train to USA is stopped, USA companies will leave themselves / or comply
They'll very quickly figure out how to become compliant.
And if they dont, you have to block the service.
Say Google doesnt play ball with the EU and the EU disallows them from operating in the EU. EU user visits a search page and sees an ad. This ad comes from some company outside the EU. The EU user can access Google and Google gets paid. How do you stop the EU user from accessing Google.
its not relevant, what really is important is Googel/FB siphoning money away from EU companies that pay for ads.
This is the source of high valuation of ad driven US businesses: ability to siphon money from businesses around the world simply for showing an ad. Check "Google Tax" if you are familiar with this term
Stop that pipeline and big tech will comply
You still don't need to specifically block either the EU user or Google's payment for that ad view.
To continue with the example, if the EU secures judgement that Google is not stopping services & refuses to abide licensing requirements, other assets Google has within the EU's jurisdiction can be at risk.
If a tech company operates in a jurisdiction against their laws, ultimately they would have to make sure they have nothing that can be taken from them there.
But Google is already not operating within the EU in this scenario. Google says "no thanks we dont want to play by your rules" yet google.com still exists and EU users can access it. That's why you have to block it, along with anyone else that doesn't go along with the proposed forced tech transfer to a domestic company. Or you dont block it and you arent enforcing the proposed rule.
They could take the hit, but that's not "we don't like a rule, so we're walking away" money.
The revenue stream is European companies paying US companies for ads (or rather European firms paying Irish/Dutch subsidiaries of Gogel/Insta/FB for ads).
Yes, you could use TikTok on the web; but... have you ever tried using TikTok's web interface? It's an absolute joke. And on the other end, shipping a webapp subjects you to all sorts of consumer-friendly technical interference like ad blockers and de-cluttering that is intended to make the social network serve the user and not itself.
[0] On Android, TikTok did ship an APK to evade being kicked off Google Play; but that's only slightly more effective than telling people to go run AltStore on a Mac or PC to dev-sign a TikTok IPA that will be missing half the features because Apple doesn't allow certain permissions to be provisioned on free dev accounts.
Given America's hostile stance to its former allies, joint ownership and technology transfer agreements as a condition for its firms operating in the EU market sounds more than reasonable. If US firms aren't happy with this, they can always lobby to impose similar restrictions on foreign big tech firms operating in the US...
If there were any.
The problem with flipping the table and starting a trade war is everyone loses... And the correct response to someone starting lose-lose games is tit-for-tat. Maybe big tech firms will think twice before throwing their support for an anti-trade candidate. (They absolutely could have used their position in media to stop this insanity, if they wanted to, but now we all have to lie in the bed they've made.)
And if they are collecting data against EU regulations how do they stop them? They already aren’t complying with the joint venture in this hypothetical. They dont pay the fine. Then you have to ban them.
Thats the dynamic in China. You have a domestic company that owns the operations and is fully regulated bu the host country. And you have to ban anyone that doesn’t cooperate with that model.