I hate that Europe leads in regulation and lags so much in innovation. At the same time, this is a step in the right direction. True, people don't care about privacy, but it's mostly because they don't understand the extent and implications of letting companies control your data.
AFAIK there is no such demand. The only demand is that if you want to process EU user's data outside of EU the place where you want to process that data needs to have privacy laws compatible with the EU ones.