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RE: BIG Things! @ned at Consensus 2018 - The Legality of Content Takedowns (GDPR) & SMT Communities That Don't Use Stake Weighted Voting!
In my non-expert opinion I believe the witnesses would ultimately be responsible for any content legally required to be taken down. We may come to a point where witness servers in certain areas of the world may need to shut down. That is unless some mechanism is added to remove illegal content. It also becomes more complicated if the material is stored as IPFS.
Technically, the EU legislation applies everywhere if the users are based in the EU - so if this is truly a problem, it is possible that EU courts/nations might move to block the domains of all apps that use Steem, as they have done with bit torrent tracker sites.