Which is true -- just like the idealistic interpretations here of the reason laws and governments exist -- but neither are really based in reality.

Since "just stop doing business there" often isn't a realistic option for most businesses, big or small, you do what you can to work within the law while attempting to retain what seems to you a reasonable standard of ethics. That's a very gray position, but that's how the world is.

When politics and legislation are ideal and unchanging, then you can expect corporations to consistently comply with all laws in all places. Until then, it's unreasonable to make statements like this. It is, of course, your right to do so; just don't make the mistake of believing it reflects how business and government actually work.

It's a bigger problem then that. Laws are not exactly straight white strings which you know everything about when you set foot on some country to begin operations. If some country takes you to task on some ridiculous convoluted third world laws ( may be I am exaggerating here ) , a company has every right to present its views in court rather then just suck it up for the sake of abiding by the law. Also, once you have set up operation in a country it is very hard to move out since it risks putting your millions of users off who have got used to your product.

Yeah, a third world law asking them to tell their users exactly what they will do with personal data they will send to a country that has notoriously no legal protection for them and a very active market in personal data and identity theft.

In this case, having google comply to the most restrictive law of the countries they are operating in would benefit the rest of the world. They are not asked to come to work naked. They are asked to explain their users who will be able to know of their secret homosexuality or the brand of their car.