Can blizzard detect if you share account with your friends that live close to you(same city)?
And is that a punishable offense?
It is a form of potential boosting, so yeah. You can check the EULA End user license agreement for like keyword ‘sharing’
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It’s a bannable offense, yes.
However, you are allowed to log onto your account from various PCs. So you could spend the night with your friend and play OW there if you wanted.
And I don’t know if this still applies since it was an ancient rule back when I played WoW, but you used to be able to share an account with anyone in your household under the age of 18. Which makes sense, because I doubt Blizzard’s going to ban a Dad for letting his 3 year old play some vs. AI games. 
But yeah, go read the ToS yourself to be sure, this is just what I remember.
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Account sharing is against TOS, yes. It is bannable.
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Potentially it is, but the reality says the opposite. Plebs follow the rules, true gamers do not care and nothing happens to them actually.
It is a bannable offense, yes.
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Blizzard can tell your account logged in from somewhere other than usual, however they cannot tell if it’s you playing.
So it’s suspicious, but it’s not actually going to get you banned if your account logs in from a location 2000km from where you usually login day to day.
Technically if they could prove it, you’d get banned… but that usually won’t happen unless it’s extreme or accusations get leveled against you and they have to investigate.
It’s a minor risk if you do, but yes it is against the rules if they find out and you would lose the account.
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Pretty sure that it is. If you value your account then don’t do it,