> Perhaps "Extraterritorial regulation" is bad wording. A country can regulate whether an extraterritorial website is distributed and or viewed
within its borders but it has no legal authority force another country to close down a website that's operating legally within its jurisdiction.
The issue is they're doing this through might makes right rather than jurisdictional authority.
You have a website in one country, 99% of the content is legal in another country but it also contains a post by a user which is legal in the first country and not the second.
The second country then demands that the website remove the post -- for everyone, they don't even want it accessible via VPN -- or they'll have their ISPs block not just the entire website but also the entire shared hosting provider the website uses. The site which is entirely in the other jurisdiction can't withstand that much pressure and removes the post.
You now have a country censoring a post world-wide because they leveraged every company within their jurisdiction to enforce a law against one that isn't. That's extraterritorial regulation.