France investigating penalties for refusal to decrypt devices

From the AFP:

The controversial amendment, drafted by the right-wing opposition, stipulates that a private company which refuses to hand over encrypted data to an investigating authority would face up to five years in jail and a 350,000 euro ($380,000) fine.
Telecoms operating companies would be liable to lesser penalties, but still up to two years in jail.

I'm assuming that this likely won't become law but what happens if it does? Does Apple just stop selling the iPhone in France and any other country that enacts a law such as this?

The pendulum has swung a long way towards security over privacy in the past few years. It's only a matter of time before a law like this becomes reality somewhere. 

(via The Guardian and Ars Technica