And if the people in the EU complied, they should similarly be held accountable under EU privacy and data protection rules. Either way, Microsoft and/or their employees personally wind up in serious legal trouble.
This is why Microsoft are in a Catch-22 situation, and why the correct solution for Europe is probably to just stand their ground until the US realises it has gone too far in expecting its laws to apply to the whole world and is now asking the impossible at the expense of its own business community.