This kinda crap can't stand. Being pro-business in the US is no excuse for letting corporations get away with this ****. If you're going to allow over selling, which I'm fine with, I get why they do it, then there has to be consequences. Either they have to look for volunteers and pay max dollars in an IDB situation or there needs to be a standard set. If there's going to be no government interference, which I think there should be, then the airlines themselves could do a lot of good pub by setting a good standard themselves. "In any country that doesn't have a standard for IDB situations, we will pay X, and in any country that does have a standard LOWER than X, we will pay X anyway". Not like it's gonna cost them much.
It's amazing how quick the US airlines (in my one experience) comply with the EU rules, but any country/region that allows them to screw people, they will.