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It's similar for us. Since I work in the energy industry we're required to have plans for how to exit Microsoft if the EU deems it too dangerous for too much of the energy industry to be reliant on Microsoft. Which is part of why I worry, because we honestly can't. We can leave Azure, but we can't easily leave the 365 platform. By easily I mean that we may not survive as a company if we have to do it. It can obviously be done, we just don't have the resources required to do it.
I'm genuinely curious to hear why it would be so hard to leave the Office 365 platform, to the point that it could mean have to shut down the company. I know it isn't something that can be done overnight, but this is on a whole different level than what I assumed the case to be. To make my question more concrete, let's say the EU gives you two years to move away from Office 365, why would this jeopardize your company?
Most corpos and banks are basically built on Excel, Outlook, Teams, Sharepoint, etc.

If you pluck that out it completely freezes 50%+ of their operations, people really don't get how much stuff in modern companies is reliant on MS stuff (and thus why they are one of the richest companies on the globe)

Yes, but there are comparable alternatives. Sure, the transition requires resources and effort, but to the point of making a company bankrupt?
In some cases I would say yes if there was a hard limit (even few years) to migrate. Again, most people that didn't work in many really big corpos and banks don't comprehend how reliant those businesses are on the MS office stack.
> Office 365 platform

Moving away from that would be a massive change management undertaking, but it's not the "Office" part which is our primary challenge. To be fair, I'm not sure we could actually survive the change management required to leave the Office and Windows part, as it would be completely unfamiliar territory for like 95% of our employees, but the collective we at least think that we can. We have quite a lot of Business Central 365 instances, the realistic alternative to those would be Excel (but not Excel). SharePoint is also a semi-massive part of our business as it's basically our "Document Warehouse".

I guess maybe I'm using the 365 term wrong?

I didn't know about business central, a quick Google search tells me it's an ERP. There are alternatives, but migrating an ERP is definitely more problematic than changing document storage and the applications you use to read and write documents. But if it's an ERP, I wouldn't say an electronic sheet like Excel would be an alternative. Or am I missing something?
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One very mundane reason a company I had worked for switched to Office365, was that emails from our own domain would often end up in the spam filter. It can cost a lot when that happens.
I see this being a problem in the current situation, where most businesses use either Google or Microsoft for their emails. But in the case of an EU-wide change, I think the situation would be different. Plus, there are other providers that could be used that aren't blocked by MS' and Google's spam filters.
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They just mean that they would have to do real work and not just sit on their ass goofing off on the internet all day. Real work is something the last few generations are "allergic" to, it gives them the "ick". They somehow got it into their head that doing work is bad and that you should only rely on other peoples work, I blame Gates and public education.
I don't agree with this view. Saying that new generations are lazy compared to the previous ones is a complain as old as humanity itself, there are ancient writers that made the same complains centuries ago. Either you know their situation and you can provide some more detailed argument, or you are just assuming things you don't know.