If they have the data, and can supply the data in readable form, they may be legally obligated to provide it. Not much else you can do at that moment, if you're Tim Cook trying to stay out of prison.
Apple is clearly working toward securing that data so they can't supply it in readable form. Hard to reconcile that with excellent usability & UX, but they're solidly heading that way. Encrypting that iCloud backup such that it [mathematically] cannot be used without the Secure Enclave is surely coming. To wit: "here's all the data we have, only the defendant can unlock it, and no we're not building backdoors in."