My 2 cents worth...
Fender, like most large guitar manufacturers, makes most of their money on their lower-priced instruments and they are getting hammered by Chinese counterfeits and copies sold on AliExpress, Temu et al. The Strat shape is public domain in the USA and China doesn't protect IP, so the logical place to sue is in the EU, specifically Germany as it is the biggest guitar market there. In addition to having legal means to fend off cheap Chinese S-style guitars in the EU, the judgement also lets them take legal action against all smaller S-style builders who sell into the EU, including US manufacturers. For smaller builders the EU is likely a significant portion of their business, however, they are probably not in financial position to legally defend themselves against the legal might of Fender, especially if they are overseas. So, they will likely just cave and stop making S-style guitars altogether because it doesn't make much business sense (and likely isn't economically feasible) make different models just for the EU. So, in one fell swoop, Fender are able to use this judgement to eliminate their competition in both the affordable price ranges as well as the boutique market segment. Pretty diabolical, albeit legal...