To be fair, it's a relatively new concept for many American companies, that they need to follow the laws of the locations they operate in, some companies need a bit of a push to properly understand how the world outside of the US culture bubble works.
It's actually not. US companies are very used to it and frequently comply with local laws (e.g. in China and elsewhere). What's happening here is a vocal minority is trying to push for some notion of US dominance over other countries.
The current administration has openly stated their intent to bully selected countries they don't like in various ways, but especially when it relates to their ability to push US propaganda to foreign places via companies like X.
The current US admin oviously treats it as such, but the EU is 27* nations who don't want to be vassalised* and who work together* to project collective strength on par with the US and China.
