No, the EU cannot dictate what companies do in other countries. They can only require them to meet standards for services and products that are sold in the EU (or maybe if the companies are headquartered in EU).
And to the point of the discussion, there are no "limits" to what jurisdiction governments have. Governments--the United States especially but many others--does it all the time, especially as concerns financial matters. Many countries have declared that they have jurisdiction over crimes against humanity committed any time, anywhere, by anyone. China has penalized American companies for activities involving Americans in America.
However the EU probably has self-imposed limits (or imposed by the member states) and as a practical matter only large or powerful states can get away with it.
A more analogues example would be e.g. if the EU would have said "Hey Adobe, if you launch this feature in the US, you can't do business in the EU".
> China has penalized American companies for activities involving Americans in America.
What are you referring to?
> Many countries have declared that they have jurisdiction over crimes against humanity committed any time, anywhere, by anyone.
This is a whole different topic, stop moving the goal posts.
Apart from financial crimes the US imposes US law on foreign companies all the time--e.g. companies that do business with embargoed countries.
Also the US considers things like "a transaction was conducted in dollars" as a hook for US jurisdiction.