There is obviously some ambiguity in the rules when people move around, and misclassifications can happen when, say, a Brasilian working for a US company in Switzerland picks up the neighbouring French wireless signal to log into their Asian VPN.

But it's really a non-issue. Google will make a good effort reducing such errors, and there aren't going to be legal consequences, nor wild leaving-Europe-for-good-drama as envisioned by some in this threat.