Frankly, I don't care if MS is standing up out of self-interest or for some other cause, the tyrants in D.C. need to be stopped. Period.
You can't apply U.S. laws to the world at large, regardless of your 'legal' standing.
Many U.S. organizations have presence and pay taxes in many different jurisdictions, making them subject to that particular territory's law. Will the U.S. allow some other country to violate U.S. laws because the subsidiary is present, in say, Aman and thus, by extension, the entire organization is subject to Aman's Law?
The answer is no, because jurisdiction is territorial. You can't apply Ireland's law to MS in the U.S. simply because they have a corporate office there, thus the reverse is true too: you can' t apply U.S. law to a subsidiary in Ireland.
Who owns it is irrelevant; corporations are legal entities of their own, regardless of ownership. Ships owned by, say Americans (most cruise ships for example), are registered in Panama, thus bypassing U.S. Labor laws because who owns them is irrelevant.
Trust me, you don't want to go there: it will open lawsuits against U.S. firms, under U.S. laws, against the owners of such ships and other corporations that use underage labor, exceed working hours / conditions, etc. in other countries.
It would basically make International Law obsolete as we know it.
It appears that the U.S. Government is bent in destroying the American economy while 'preserving' American security.