That's correct and that's actually how it works right now (Germany has different speech laws and Twitter attempts to comply with them[1]). However, it is an American company and it's not
unreasonable to follow the American law in America. I would also think it's quite possible to use the network effect of the service to bully places like Germany into allowing greater expression, or simply providing it on the sly by making it easy for Germans to access what they want. Although, I do see the EU is trying to do the same in reverse, probably to (as is its wont) to create a tech customs union that allows its own tech unicorns to appear (something it has failed miserably at, in part because of its restrictive laws).
If I had a tool that could (at least attempt to) filter out anti-semitism or Holocaust denial, then Germany could have that set to "on" to comply with the law. I'm all for democracies deciding what laws they want.
[1] https://www.reuters.com/article/us-germany-hatecrime-idUSKBN...