Microsoft admits under oath it can't protect French data from US government access.

They can be fined if they actually use the data wrongly. However, them admitting is already important. It should be very obvious to anyone that there is not such thing as 'European enclaves' in these hyperscalers. Even if they host the data in Europe, unless it is an european company that does not have to comply with the US state, then the data is available to the US government.