“You’ve got people spending their time figuring out how to send a file instead of getting their work done.”
This happens in every company with an internet connection.
"That has led to the rise of a number of locally run application stores, which analysts say will sometimes market pirated copies of software or charge extra to promote a new application."
So the piracy problem doesn't happen so much in the west, but the objection here is that simply advertising on Facebook or Google isn't going to get you a global audience because someone has split off part of the market. This is like saying how terribly inconvenient it is that not everyone in the world watches US based TV channels.