Earlier quoted context omitted.
> I see this as yet another tax on (European) startups who have to invest even more resources into regulatory compliance. This also affects American companies and the degree it affects you primarily depends on how much of your business model was depending on you doing nefarious things with customer data.
Could American companies simply state that European citizens are not allowed to use their service due to stringent compliance laws, and add a checkbox stating something like, 'My residence is not subject to EU jurisdiction?' Yeah, yeah, "giving up lots of customers," but if you're a small startup it might be attractive to target a smaller problem space to start with. Also, everyone does this already with, "I am older…
That works for B2C situations but it won't work if you have European companies as customers.