without data, it’s hard to make this argument. what we know for sure is that bureaucrats fully support the privacy angle. but from my anecdotal real life experience almost no one cares (another argument that without data cannot be generalised).
There is a huge EU project which in theory is trying to build those competitors - Gaia-X - but as is typical with such projects the results have been poor. Looks to me like a lot of the money was wasted on "blockchain" scam projects.
The thing is - there is real significant potential in the EU for some of the existing large colocation/VPS provides to become just that only the EU's own implementation has failed.
But of course, Shopify can just push this responsibility onto their customers, meaning the shop owners. That's what they currently do.
The issue is with European regulations. The lawsuit was in Germany because that’s how legal systems work around here, but the sticking points are very likely to be present in national laws across the EU. So, ultimately it won’t be about the German market, but about the EU.
I don't know how that affects lawsuits though. I'm guessing if you have any customers in Germany, then someone could take you to court in Germany, but I'm not sure...
The differences in laws and requirements by country is one of the biggest factors to consider when providing international services of any sort.