[mbesto]

"So anything that would allow the US CLOUD act to access a EU customer's data is a GDPR violation"

Which is essentially the argument and is a huge legal grey area right now.

Similar situation here:

The EU’s data protection supervisor (EDPS), which oversees the bloc’s own institutions’ GDPR compliance, has been looking into the European Commission’s use of Microsoft Office 365 since May last year — as well as probing EU bodies’ use of Amazon’s cloud services.

The European Data Protection Board (EDPB) also kicked off a related coordinated enforcement action in February that it said would focus on the public sector’s use of cloud services — which it said would take about a year to report, with the aim for the action to harmonize regulatory interventions in this area.[0]

As you can see, nothing has happened yet and this is all still evolving. It seems pretty clear that the EU is using GDPR as a political wedge to drive business back to their countries (despite company's in those countries clearly having a desire to continue to use those products and services). Again, it's not as black and white as you are making it out to be - it's still be fought.

[0] - https://techcrunch.com/2022/11/28/microsoft-365-faces-darken...