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However, it is causing varying degrees of pain to be in compliance with this. There is a game company that took the opposite approach. They decided it wasn't worth the pain to comply so in effect they're deleting the accounts of people in Europe. I only heard about this as they run one of the games I played a long time ago, the MMO Ragnarok Online.
It is your responsibility for information to be accurate and up to date. Can't blame them for acting in good faith on what they have.
What happens when they mistakenly remove an account that belongs to someone not in the EU?
Very true, but it should also be the responsibility of the company to make sure you have upto date info before axing your account. Say you were in the middle of a big move and never had the time to log in and change it, you get settled down only to find out your account was canned.It is your responsibility for information to be accurate and up to date. Can't blame them for acting in good faith on what they have.
Defiantly true, Jurisdiction and enforcement is a major problem online.
I seen reports of people doing 100% lawful things in there own country only to be extradited/arrested in anther country for something that's not legal there only because the site/service was available to anyone with internet.