French authorities declare the use of Microsoft Office and Google Docs illegal in schools and education markets, as they don’t follow GDPR and might disturb later competition by making students used to these proprietary solutions.

https://questions.assemblee-nationale.fr/q16/16-971QE.htm

Looks like it only applies to Office365 online and Google docs, not the installed MS Office suite. The fact that these companies are US based means there is no guarantee that student’s data isn’t accessed by the US government, which seems to be the main issue.
@thelinuxEXP the ironic situation is I can imagine Chinese companies meeting the standard requirements and replacing Google documents and Microsoft word. But there's also a good chance that open source standards will generally service as adequate replacements. This is exciting news. Although I can imagine the government requiring services and serves to be based in the country so they will be permitted more ready access to user information.
@goodgoogleymoogely Chinese companies would also not comply with GDPR, and so not be allowed