digressing
I seriously doubt that the Austrians have such a custom. :)
However, I did read about an Armenian couple that lost custody of their children for fondling their (the children's) private parts in public. The defense was that such was playful and customary in Armenia.
I have no idea whether this is trully customary in Armenia and if it is, it is certainly distasteful even if not done in a lascivious way.
Damaging to the child? I doubt it.