Of course the service provider can be compelled by law enforcement to hand over encrypted data. Law enforcement may then either attempt to brute force the encryption key password, or compel the user to provide the encryption key password (typically the account password with end-to-end encrypted services): https://en.wikipedia.org/wiki/Key_disclosure_law
Does ordering you to hand over your password entail a form of self-incrimination or a violation of the right to silence? Would granting police the power to compel passwords cross a line centuries old against forcing a person to speak to build the case against them? https://globalnews.ca/news/5310901/canada-privacy-passwords-...