Bhai, those laws were written in 1947 after World War II in which 40 Million Europeans died due to Nazi Germany
Europe never wanted that type of ideology to exist and the countries that suffered the most such as Germany and Austria which lost over 8 million people in the war and France which never wanted to be subjugated under again passed these laws to stop Nazis from gathering again.
Due to these laws, the Nazis fled to Argentina and South America.
Basically what I was trying to say is Saddam for instance is the government of Iraq and thus if Saddam does something stupid, then the government gets sanctioned but since the government controls a country, the people in turn also get hurt by sanctions.
In this case, it was a private newspaper and not under the control of the Danish government and thus Denmark cannot be punished for what a private run newspaper can do.
Boycotting Danish goods was a stupid idea as it mostly hurt local producers of Danish goods in the Middle East.