New Australia law threatens social media firms with fines, jail over violent content

[Ford_Prefect]

6. Bingo!

Unless of course the country in question has an extensive firewall setup that blocks everything unless they agree to comply with the countries laws.

Australian Communications and Media Authority (ACMA) has this authority in Australia. Facebook is likely to comply given recent events.
If you mean some other company I'd prefer you were more specific. One guy with a site he's running from his garage is not the same as an international corporation.

The debate about legal boundaries of the internet gets complicated when you try to apply standards of self expression across a range of cultures and legal communities. However, legal authorities in each state tend to expect legal compliance based on local standards. They also expect to enforce such compliance. The days of the wild-wide-open internet are gone if for no other reason than there are state security agencies who worry about access and terror and other awful things...And the big money is figuring out how to control the access for a fee.