That is not the scenario here. Cursor is being hunted by an extremely motivated corporate competitor. Cursor has been leeching the gorilla's blood and the gorilla finally noticed. Microsoft doesn't (necessarily) need the law here. They have it if they need it, but they can kill Cursor without needing to sue them. The disastrous outcome isn't a penalty--it's a critical mass of users switching to Copilot because they can't use their Microsoft extensions in Cursor any more. Cutting off the extensions on the same day that their Cursor clone went live was effectively a declaration of war from Microsoft.