The outlined risk is not solely a Microsoft risk. It’s a “contract out to another irreplaceable service” risk.
Make your technology fungible and risks disappear.
replies(2):
(the EU) doesn't need to throw out the baby with the (US-controlled) bathwater. The EU should present Microsoft with an ultimatum similar to what China might: setup a non-controlled european licensee to own and manage all MS & Azure infrastructure in the region, or have some legislators force a similar structure on them. Complete control, full sourcecode, EU-only support/access - as a condition for corp HQ being allowed to have a monopolistic market share. Either way, nothing the US might decide to do should have any effect in "EU Microsoft", short of severing US Microsoft off completely, in which case EU MS just becomes fully autonomous and bye-bye US. Clearly, a US-controlled Microsoft without this structure is a deep security risk to europe now.