DoJ is insane.
"The DoJ has every right to rule on how American companies behave"
Yes, but this company isn't American company, at all.
It's Irish company owned by American company and yes, that is a different thing. Irish company can't break the law because some owner tells to do so it's irrelevant what DoJ wants.
That's basically same thing as putting car owner in jail because someone who leased it, broke the law. Even when the person who leased, is known.
It's obvious that DoJ isn't after the data itself, they are after _everything_ in those servers and that's totally illegal by any European law. And of course DoJ knows this, they aren't stupid. But they are insane, basically starting a trade war just to extend their own power to global.
That's literal power-hungry insanity.