Oh, because of the internet I can serve a EU customer from the US without EU regulation. Why would a startup setup a nexus in the EU?
For example, things like the company actively seeking out clients in EU countries, or offering the service in EU countries' languages, make it more likely that EU will consider the company to be subject to GDPR even if it has no presence in the EU.
It seems to me that EU is overstepping their jurisdiction here, but I really don't know how international law works.
An EU citizen buying a product in the US, while in the US, doesn’t pay EU VAT on that product. So it follows that they also wouldn’t be “protected” by European law, despite the color of their passport. US citizens aren’t protected by HIPAA when getting medical care in Britain or France.
Further irony is that many Europeans complain about US “imperialism” in areas such as foreign policy and intellectual property, yet get positively ecstatic over the idea of the EU claiming jurisdiction over companies or users that aren’t in the EU.
Being an EU citizen in the United States using an American product doesn’t make that American product subject to EU law — it doesn’t matter how bad people want to believe that is so.
When in a country, you are subject to that countries laws; you don’t get to bring your home country’s laws with you — except under treaty agreements.