They could, but so could any other cloud provider. The main difference is that with a European based provider there is hopefully not a likely scenario where they would do this.
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As surely as you could set $100,000 of your own money on on fire, yeah.
Technically yes, but bypasses are easily and widely available for all non-cloud stuff. MS licenses are a joke for anyone already unconcerned about following the rules. MASgrave is your friend in that regard.
Also, Microsoft fucked over the IRS to degree that they still haven't recovered from when the IRS tried to get them to stop using tax loopholes more than a decade ago. They aren't going to let the US government bully them. You have to remember that MS has the US government IT infrastructure by the balls, for better or worse.
Absolutely
Update could brick your computer intentionally, and on a regional basis. Could steel your data. Mix of love, loyalty and money for US government and its global dominance all that is needed.
They could block Windows licenses going forward, but it wouldn't impact all the activations already done. Windows is not a subscription.
The UD absolutely could, but Microsoft couldn't without facing massive legal trouble. That is, if the US legal system follows through and actually enforces EU court orders.
Regardless, unless specifically being forced to do so by the US, Microsoft wouldn't have any reason to leave a billions-dollars market
I mean, technically yes, but also no, because Microsoft is a private company, so it would be up to Bill Gates, and Bill Gates wouldn't do that.