Let's not forget that's already the case since 2015 for businesses of countries behaving like police states (like the US) being effectively banned if they are trying to handle personal data (including often IP addresses) :

https://en.wikipedia.org/wiki/Max_Schrems#Schrems_I

But enforcement has been slow-moving :

"German state of Hesse has banned the use of Microsoft 365 in its schools (2022)" :

https://news.ycombinator.com/item?id=33741537

Also there's an even more recent precedent with the new directive about the obligations of content displayers (typically regarding copyright takedown requests) : in the end the directive is at least somewhat accommodating for the small/new/nonprofit displayers.