In business, especially on the government side, incumbency plays a very big role. Just knowing whom to call in case of issues and how soon they respond may account for all the trust needed to renew. My 2c.
But this year is also the year all European companies and governments learned the hard way they need to ditch US providers, and actually started working on it.
Blackmail from your provider is not great for business relations. Let’s not pretend otherwise.
But this article has nothing to do with the above, or with views of Musk. As others said, this request was for centralized access and SpaceX responded with a B2C proposal. It would have been rejected just as quickly even if it came from another company unaffiliated with the US.