This is the dark side of the same impulse that compels big tech companies to follow the GDPR even though they aren't headquartered in Europe: If a big enough market is run by an insane jackass, that insane jackassery will spread through the world on the wings of corporate policy. I really wonder what's going to happen when the India-China rivalry spreads to conflicting laws for tech companies that want to do business…
Companies want to profit. They'll either be forced to follow different local laws in different locations, or they'll avoid the situation altogether. Microsoft chose the second approach and now Windows doesn't have flag emojis.
I think the better model is for companies to stand by their morals (even if they're weak) rather than bending to the unique tyrannical demands of each sovereign nation. Microsoft's choice here is honestly the most admirable to me, even though I despise them as a company.