Exactly - it's about availability. If someone with remote access could knock out your business operations, how long would it take to adapt? How much economic cost could that incur, perhaps at a critical time?
You're assuming that the data can't be unencrypted, which isn't a given.
Also you're not understanding the other risk of the sun king owning, or having leverage over the hosting platform: access.
If your access can be removed at an arbitrary point, you your own data and processing, then you're sunk. Sure this is illegal, but thats not the point. Its clear that legal rules are not to be trusted anymore.
