The rebuttal described by Microsoft doesn't involve the German government sending any orders to any entity outside of Germany either. This is the relevant quote from the article:
Germany’s Foreign Minister responds: “We did not conduct an extraterritorial search – in fact we didn’t search anything at all. No German officer ever set foot in the United States. The Stadtpolizei merely ordered a German company to produce its own business records, which were in its own possession, custody, and control. The American reporter’s privacy interests were fully protected, because the Stadtpolizei secured a warrant from a neutral magistrate.”
"[N]o way would that response satisfy the U.S. Government” because the documents held by the foreign company for safekeeping are private letters, not business records. And any attempt to take possession of those letters through a warrant – even one served on the company entrusted with those letters – would constitute a seizure by a foreign government of private information located in another country.