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Looks like this might be a thing now!
(lemmy.world)
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I believe blocking reddit in the EU is an option.
How would they implement that?
Matching you IP to your country and showing you an excuse if GDPR would apply. Some American news outlets do it this way.
All governments have the power to block a website, there have been sites blocked by the government such as pirate bay and MEGA upload. It isn't outside the possibility they can get blocked at an ISP level or beyond that.
They can even contact the website host which most companies will use Amazon services and they will definitely comply with EU regulations