if if it's just that, it's pretty easy to solve, don't you think so? The EU is leading on privacy, no doubt, or better: the EU is (finally, and really a bit too late) doing something while, afaik, the US is almost doing nothing (except for CA).
I hope the EU is able to slowly write down easy to implement rules other countries can just cut & paste
The EU members get all of the privacy downsides and none of the financial upside from the American behemoths hence the legislative gymnastics to find them for $N millions every quarter and now further protectionist moves.
If Google set up a subsidiary in Europe, that ran the service for european users and was the only entity that had access to the data, this would not be a problem. The problem here is Google's insistence that US entities will be allowed to access european data.
Same can be said of American protectionism. TikTok being the prime example.
My guess is that within a few years (or even sooner), you will be reading about a massive breach of student data from whatever alternative they choose to go with.