Collecting personal data from EU citizens whilst they are in the EU is doing business in the EU, which is why the court ruled the law did apply. Did you read the article?
Clearview was not fined specifically because of a provision in that same law that says such data collection is permitted if they were doing this business on behalf of foreign law enforcement. So the UK court ruled the law does apply, but that Clearview wasn’t in breach. The UK court used EU law to determine Clearview was not in breach of EU law. The fine was not removed because Clearview is outside of their jurisdiction, which they’re simply not.