The law under which they were requesting the takedown didn't apply, but their actions were still illegal in their home country under other existing laws there.
In most countries a DMCA request is meaningless and you have no obligation to comply with it, you are only required to comply with a court order issued by a local court. Especially when you are a hosting provider, as you're not responsible for the content in question anyway - your customer is.
For the things i host (none of which is hosted in the US), i ignore DMCA complaints as the vast majority are just automated anyway. If i get a polite personal request from someone i'l usually look into it and may in turn make a polite request to the user who uploaded the content, but a templated DMCA demand just gets junked.
The users i'm hosting are free to act on or ignore such requests as they see fit, but i won't be deleting their files or handing over their personal details unless a court order compels me to.