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Will it? I'd expect any company leaving Europe to delete their stuff before selling off the datacenters. Sure, the authorities could sweep in and compel the local employees to prevent this from happening, but this would be a rather blatant expropriation of intellectual property without a fig leaf of "this company is voluntarily leaving because they are no longer willing to comply with local laws, too bad!"
There's also the point that asymmetric tit-for-tat doesn't require identical fields of retaliatory regulation. If EU authorities target US operators to open up competition space in the EU markets, US authorities can target EU banks that the EU would count on to finance those EU operators. The EU financial sector can make far more money by accessing the US financial markets than by servicing EU operators cut off from the US financial system, and EU attempts to try and set up dummy-financial companies still run into the issue that, at some point, those nurtured companies are expected to access private capital investments. Which, by the nature of the global markets, will want access to the US financial system and US markets and US consumers to grow faster than a company that exists solely on EU government dole.
The reason the Russian expropriations of McDonalds or Irish airlines were able to 'work' is that the Russian banks are already cut-off from western financial sectors, and so have little to lose. Even then they have, and will, pay high opportunity costs for the credit close offs, such as we're seeing with the Chinense economic takeover of the Russian market. The EU would have to cut off the US financial sector as a self-own to open up an equivalent policy space, and that still wouldn't address the issue of the incentive structure from the US side (i.e., paying people more than the Europeans).
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