Borrowing from how tax & law is usually applied for companies trading outside of their incorporated country, at least in many places including the EU: If you have users/customers in a certain country, even if your product is purely software, you can be considered to have operations in that country.
Couldn't users in pretty much every internet-connected country use VPNs and other methods of cross-borders indirection to access even those US services which explicitly block non-US IP ranges?
If this is the case, then is it not the case under the quoted reasoning above that any internet company should be expected to have operations in every other internet-connected country?
It's the same reason Australia and now South Africa demand payment from Meta and Google for revenues related to links going to local news sites and the like.
If no money is changing hands, good luck with that. (Or, rather, bad luck with that.)
(If money is changing hands, you might find your payments blocked by local payment providers, though even then that would take a while and might or might not happen.)