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Let's get this straight.

A US judge granted a warrant for emails of a suspected drug dealer. This is not a data grab or some underhanded spying, but a search warrant for electronic data limited to a specific individual. The warrant was used to request the data from Microsoft - presumable as the email account was held with them.

Microsoft must have then refused to provide the information and their defense was that the data was held in Ireland. At which point the US judge then said 'doesn't matter because you are a US company' and now lots of US companies are saying this will damage their business.

Now, forgive me for being somewhat dense here, but are they saying that their business relies on hiding information from a legitimately granted and served search warrant? I know everyone just loves to jump up and down about illegal data grabs by whatever security service is the flavour of the month, but that is not what is going on here.