Not uncommon in Europe either. Especially in non-renovated parts of old cities or middle-of-nowhere kind of places. Old pipes just can't handle too much paper.
Come to Baltic states or Poland then. It does happen in either super old and not yet renovated downtown buildings or roadside establishments in the middle of nowhere. Old narrow pipes just can't take paper. Especially if someone loves to fold it few times...
I think I've seen that in the UK as well, but memory may be playing tricks on me.