Lobbying the wrong people
So the issue is that the US is charging in and bypassing the international frameworks for taking data stored in the EU, and this lobby wants to attack the EU for blocking this?
The only argument in favour of this approach seems to be "we've determined that, while you may be right here, there's a bigger bully who we're more afraid of". Given that the EU is the bigger economy than the US, you'd hope that being able to do business there would ultimately be the priority.