The report is frustratingly thin on details.
But it represents an even worse scenario than the one posited by
Legal demands for password, as reported by CNET, go beyond the mere one-time production of data from a users' account, of course. On Google, for instance, once someone has the password to your Gmail account they've got lengthy access to your calendar, search history, Drive docs, Gmail chats, and maybe your Google+ account.
CNET reports the unnamed companies have pushed back on the demands.