Most National governments embraced globalism and free market solutioning. It worked both ways.

American Federal Systems also have European and Indian operators but it gets more restricted depending on what part of the system you're dealing with. Even then, the operators get it wrong.

Many "American" firms are being served by Irish, Bulgarian, and Dutch operators for example. When you get to Fedpod, the restrictions are usually tiered, not all or nothing. It's why US firms got caught with Chinese handling data.

The question isn't should Europe and even America clean it up - it's how much is legitimate national soverignty and how much is going to be straight mercantilism in the Cloud/SaaS sector.