Ok, so badly phrased, yes companies will do geo fencing principally for security threat containment. If a company has no means to serve customers in a region they may also block access to avoid people making orders that can’t be fulfilled.

Denying service that they functionally can perform because of the whims of politicians and politically minded actors is a foolish behavior though. Every place on earth has some wing of society that would prefer isolationist and ultra conservative practices, to self censor to the lowest common denominator is going to only push away those users who aren’t zealots.