They are fine with transport encryption. They want do ban E2E encryption. As long as the companies (and the authorities) can access your data at rest, they are fine.
Encryption does not work unless everything is encrypted, even at rest.
There are no secret keys that only the "correct" people can use, there are no impenetrable vaults where hard drives live and only the "correct" people have access to. It is either encrypted, 24/7/365, in all the forms it lives in, or it is not encrypted.
Banning E2E is the first step on banning encryption entirely. There is no other sane way to conceptualize this.
What is "E2E" is a bit ambiguous. Server-Client is a sort of end-to-end in network context. Maybe nowadays people say E2E for between personal device encryption?
