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It's intentionally lagging yourself to give the average person a harder time against you that a lot of people hate.
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But lag is determined by your device speed, your connection-wifi/3g/4g etc not just area you are.. so you can't really base players latency off where they are from i.e my ipod2gen works at like 300+latency while my iphone 6 works at like 100 or something roughly, so this serves no purpose, unless its actually for the old idea of seeing actually how many are playing from uk/asia etc (if the last info was just based on the player picked flag idk.)