EDI for clarity, of course there are no treaties about parking spaces. But treaties usually include general provisions about courts recognizing each others' judgments in criminal and civil matters, not least to prevent cross-border financial fraud, tax evasion and so on. It's not foolproof because not all territories have treaties, eg someone based in Somalia could run an illegal internet business with relative impunity because the US has no treaties with Somalia (as far as I know). On the other hand, countries that have no criminal or commercial treaty relations with other countries tend to be hellholes.
US-based Internet companies have flourished due to the relatively hands-off regulations concerning websites. To suddenly apply every foreign law that's ever been written would be a significant chilling effect on business.
* I'm not sure about places like North Korea, but trying to offer services there would be embargoed by domestic sanctions in any case.
I'm not sure why so many here are so quick to throw the hackers under the bus as soon as they agree with the government's demands. This kind of thing could happen to anyone, and ruin any controversial startup.
So what if it's a small team offering this service remotely? What stops them deploying this in their home town of Rome? And what makes you so sure that claims against them would be laughed out of court? True, any judgment against them would take a long time to enforce, hence the city exploring the more practical route of asking Apple to cease enabling their activity. But cross-border litigation happens all the time.
He meant running a business, from SF, whose primary activity takes place in Rome, and was also illegal in Rome.
Not just running a business from SF that's illegal in Rome.
If you are unable to follow a city or county's laws, then you either need to go about trying to change those laws in that city or country, or not operate there. They released an app specifically to do something that is not legal in a specific city - look at that twitter post.
You can't do something illegal in one city just because it's legal elsewhere - why should an app be allowed to?