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Philips Hue will force users to upload their data to Hue cloud - Home Assistant
(www.home-assistant.io)
Home Assistant is open source home automation that puts local control and privacy first. Powered by a worldwide community of tinkerers and DIY enthusiasts. Perfect to run on a Raspberry Pi or a local server. Available for free at home-assistant.io
Would it not be possible to block this using firewall rules?
Hmm, maybe. Depends on the infrastructure they put up. If there is a separate domain for the telemetry, then you can block it. Still no guarantee that it still works though.
The app will need internet access to login though. That really is a cat and mouse game that is not worth your time I'd say.