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Although Telegram does use end-to-end encryption, it isn’t the default option. Many users don’t know this; they automatically assume their conversations are 100% secure.
Look, if this was an app that allowed for E2EE on all communication and did not store any of the communication on some company’s servers I would be saying France is completely 100% wrong. France is wrong in saying the encryption is the problem, but they are partially right about Telegram not complying with legal requirements as it does not encrypt all communication and it should be obligated to comply with criminal investigations just like they would be obligated if they were a mail delivery service.
Just because something is on the internet doesn’t mean it isn’t subject to warrants. If a company can be compelled to provide written documentation in their possession, the same is true for electronic. That company should not be obligated to undermine their own encryption though.