> I don't believe you would be considered to be violating the GDPR if you are complying with another court order, because you are presumably making a best effort to comply with the GDPR besides that court order.
It most likely depends on the exact circumstances. I could absolutely imagine a European court deciding that, sorry, but if you have to answer to a court decision incompatible with European privacy laws, you can't offer services to European residents anymore.
> You're saying it's unreasonable to store data somewhere for a pending court case?
I'm saying it can be, depending on how much personal and/or unrelated data gets tangled up in it. That seems to be the case here.
> Conceptually you're saying that you can't preserve data for trials because the filing cabinets might see the information.
I'm only saying that there should be proportionality. A court having access to all facts relevant to a case is important, but it's not the only important thing in the world.
Otherwise, we could easily end up with a Dirk-Gently-esque court that, based on the principle that everything is connected to everything, will just demand access to all the data in the world.