Seems like a non-story. It sounds like a ban on people using personal accounts with unsanctioned services and sending government data to them. Even most small companies might have restrictions like this.

This is just an IT org asserting control over how data moves in and out of the business/government. Its seems pretty reasonable that a company/government would want a contract in place with any provider they are sending data to. Oblivious that is going to have costs in agility and picking the best tools, but this is reasonable information security behaviour.

I'm surprised they aren't taking the extra step and moving to restrict data sharing to only EU based firms given... geopolitics.