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Aren’t they using the legal system in this case? So it is by definition, within a set of established laws. Though to me it’s not clear if the judge will let them actually get this data. If this were Apple, Apple would probably push back. Microsoft might just give it away for fun though.
My point was simply refuting the “no government” part of your statement. There are plenty of authoritarian governments that are just as bad on privacy
Rockstar and Take-Two are performing the investigation themselves, not law enforcement. This is corporate vigilantism where the business finds someone they think is guilty and hands them over to the police to enact the justice the business advocates. The police should be investigating and requesting records, NOT the business.