The ruling is "the first in a series of cases regarding the use of Chromebooks and the G-suite for education". So likely this is just the beginning.
There have been two rulings regarding this particular municipality. First, they were investigated due to a data breach (personally-identifiable information was shared between G-suite and Youtube). This breach lead Datatilsynet (the Danish Data Protection Agency) to investigate the municipality and conclude they hadn't done their due diligence in investigating privacy implication of the setup.
This forced the municipality to perform a through investigation of the privacy issues. Their findings in turn lead Datatilsynet to ban further use of G-suite an Chromebooks (in the municipality) because they found more serious issues, for example they couldn't guarantee private information was not shared with unsafe countries.
The choice of software and hardware is decided by each municipality, so there will be no nationwide ban as such. But underlying privacy problems will be the same for other municipalities which use the same software.
But that was due to misconfiguration. For example the kids could access and comment on youtube videos with their school accounts and when it did that the comments was posted with their full name and school/class name.
That misconfiguration is what triggered the investigation, but the investigation uncovered more severe problems, for example the municipality could not guarantee that private information was not transferred to unsafe countries.
Google have some setup where the data is stored in the EU (Ireland) and allegedly the encryption key is only available to the Ireland branch of Google and not the US branch. But the setup is still accessed by personnel from the US branch.
There have been two rulings regarding this particular municipality. First, they were investigated due to a data breach (personally-identifiable information was shared between G-suite and Youtube). This breach lead Datatilsynet (the Danish Data Protection Agency) to investigate the municipality and conclude they hadn't done their due diligence in investigating privacy implication of the setup.
This forced the municipality to perform a through investigation of the privacy issues. Their findings in turn lead Datatilsynet to ban further use of G-suite an Chromebooks (in the municipality) because they found more serious issues, for example they couldn't guarantee private information was not shared with unsafe countries.
The choice of software and hardware is decided by each municipality, so there will be no nationwide ban as such. But underlying privacy problems will be the same for other municipalities which use the same software.