Since you apparently need me to spell it out for you, please allow me to explain:
Firstly, it's clear that you don't run a business since, if you did, it would rapidly become bankrupt because trying to solve a problem like this by simply "employing a lot of people" would just be throwing money down the drain.
Secondly, you miss the fact, whilst it is, indeed, up to business to comply with the law, to try to make a global business compliant with *every* law, *everywhere* would be an even bigger waste of money and utterly futile.
I do run a business and supply products worldwide, but due to the adult nature of those products, they are not legal in certain countries. Now if someone from one of those countries chooses to order a product from me, should I be required to ascertain whether my product is legal under that country's laws or is the onus on the customer to ensure that they are not breaking that country's laws buy ordering it. You seem to think that the former is the case, even though I am breaking no laws in my country by selling the item. If I supply that person, should I be liable for arrest in their country?!
If Google were to accept the Italian ruling, then they would have to start censoring *everything* on Youtube and every search result and every g-mail to ensure that it didn't breach some country's laws which would be so monumentally expensive and so monumentally ridiculous that these flaws should be obvious.