While I would like to see the outcome as you describe it (both US business and government could use a splash of cold water from the EU data protection laws), I'

While I would like to see the outcome as you describe it (both US business and government could use a splash of cold water from the EU data protection laws), I'm not so sure that's how it will play out. A common fallacy is to assume that the law and its implementation by government is logical, when in reality is full of contradictions, often on purpose. The US has been throwing its weight around for a while now, so it wouldn't surprise me if it demands "special" treatment, even when it contradicts its past arguments. Without more evidence, I wouldn't rule out any possible outcome. This whole revival of the Crypto Wars smells strange.