You’re saying that Spotify don’t have employee moderators for uploaded podcasts, which they do. In this era of every person thinking they’re an influencer and everyone needs to hear what they say, the issue is that likely no matter how many they have, the number of episodes that get uploaded will always dwarf them, so they rely on their auto-moderators to find the most egregious rule breakers. They can’t catch everything there though. If a customer finds a rule breaker and reports it, they’ll take action - that’s good!
The alternative is that every single episode of every single podcast has to be manually reviewed and approved before it goes live, which is not feasible.
It does change that fact, because again - they’re forced to by law. There’s no wiggle room. Had they chosen to defy them and take them to court, Microsoft probably would have been forced to cease trading in the USA or something equally as company destroying.
Your data and email isn’t ever “safe” unless you’re hosting every single part of it yourself, and even then - if the government orders you to do something, you’ll fold like origami when faced with the alternative. Microsoft aren’t in the business of deciding who is and isn’t “tyrannical”. They are in the business of following legal orders and staying in business though.