Why should every US tech company be expected to duplicate its infrastructure in the EU? Google isn't special, this applies to EVERY US-based competitor to GA. This gives EU competitors an unfair advantage.... and that's the real point.
Because the US cannot implement reasonable privacy laws that give basic safeguards to personal information expected by EU citizens (or even UK citizens).
If anything, EU competitors to Google Analytics are at a _disadvantage_ because they can't apply the same lassaiz-faire techniques for US-based customers that US-based companies get away with.