Only the free versions are banned. Discussed extensively a couple weeks ago: https://news.ycombinator.com/item?id=33686599
This applies to other free offerings like Google Workspace for Education. Paid versions of these cloud services might be an option if they hadn't already been disallowed based on worries about data safety.
Generally speaking current law in the EU does not allow the use of US cloud services. That’s the basic outcome of the cited Schrems 2 ruling.
The various entities that use cloud services either cease to use them or get around the ruling by making their users agree to their data being processed in the US.
Currently we haven't had a clear ruling but at one point there might be a Schrems 3 ruling disallowing any accept by click-wrap license.