Comment by NoboruWataya

MSFT already operates in Europe via subsidiaries for a whole host of reasons. But hiving certain assets off in a subsidiary is very rarely effective to avoid laws and regulations that apply to the parent. The parent controls the subsidiary so a court or regulator having jurisdiction over the parent could order it to get what it needs from the subsidiary. This is particularly so in the US, which is kind of known for enacting overreaching extraterritorial laws.