Storms Gather For Data Protection In The Cloud

The EU has been hit by Microsoft's recent announcement that, in certain circumstances, it may be required to disclose personal data belonging to businesses using its new cloud service to US authorities - even if the data centres are based in the EU.  Such disclosures would be carried out under the provisions of the Patriot Act, which was initially drafted as an anti-terrorism tool, and allows authorities access to personal data held by US-based companies, regardless of where it is stored in the world.  Further uncertainty was added by the revelation that, despite Safe Harbor arrangements in place, Microsoft may be required to keep such disclosures secret both from the EU and from individuals to whom the data relates.