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Microsoft Communications Government Privacy The Courts United States

Microsoft Agrees To Contempt Order So It Can Appeal Email Privacy Case 123

An anonymous reader writes: Microsoft made news some weeks ago for refusing to hand over customer emails stored on its Dublin, Ireland servers to the U.S. government. The district judge presiding over the case agreed with the government and ordered Microsoft to comply with its demands. On Monday, Microsoft struck a deal with the U.S. government in which the company would be held on contempt charges but would not be penalized for it until after the outcome of an appeal. The district judge endorsed the agreement (PDF) on Thursday.
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Microsoft Agrees To Contempt Order So It Can Appeal Email Privacy Case

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  • About Time (Score:5, Insightful)

    by dcw3 ( 649211 ) on Wednesday September 10, 2014 @07:17AM (#47870325) Journal

    First time I've wanted to actually compliment Mickeysoft on something in years.

    • First time I've heard that in years... How's the weather in the 1990's ?

    • There is exactly one reason why they do that: If they don't, they can kiss the storage business abroad good bye. Nobody would ever even think about touching any of their storage services with a ten foot pole, and, if sufficiently security conscious, contemplate moving away from MS wherever possible. At the very least in the server area, if possible at clients, too.

      And I'm not that certain whether companies in the US would agree with it either.

      • Which is why people have mentioned that Microsoft is pushing to the bitter end. They want it painfully obvious that the same rule applies to their major competitors as well so customers won't leave Microsoft for Amazon or Google.

  • by gstoddart ( 321705 ) on Wednesday September 10, 2014 @08:37AM (#47870859) Homepage

    Because Microsoft will become persona non grata in Europe if they are required to hand over data to the US against local law.

    This has always been something people have warned about ... the PATRIOT act basically says "we can force any company to hand over your data from anywhere in the world, and we don't give a damn about your laws and it stays secret".

    So Microsoft is in the position of complying with the US government, and losing business elsewhere ... or telling the US government to shove it.

    When the US has decided their secret laws trump the laws of every other country, this was inevitable -- and people have been warning about this for years.

    I know many governments already basically say "you can't store government data in a US cloud service or on a US server" for exactly this reason.

    Basically, the US passed a law which put companies between a rock and a hard place. And now they have to choose between long term profits, or America's zeal for security.

    Quite frankly, the US needs to get slapped back down and told by the rest of the world not our fucking problem.

    • by mwvdlee ( 775178 ) on Wednesday September 10, 2014 @09:22AM (#47871233) Homepage

      I know many governments already basically say "you can't store government data in a US cloud service or on a US server" for exactly this reason.

      Make that "you can't store government data on any server from any company doing any kind of business within the US".

    • by Nemyst ( 1383049 ) on Wednesday September 10, 2014 @09:45AM (#47871419) Homepage
      You got that wrong, this is the US providing heavy stimulus for foreign companies creating their own cloud services. They're basically giving free reign to European providers, who do not own a single server in the US, and telling them to go ahead and dominate the market. Europeans should be thanking them, if anything!
      • by jbolden ( 176878 )

        Exactly. That's where this is likely to go. Europe only cloud services storing European specific data and those are governed by European law. Put it on a Chinese service and it is governed by Chinese law. Then you have a simple financial model for regulating international corporations.

      • by Rich0 ( 548339 )

        You got that wrong, this is the US providing heavy stimulus for foreign companies creating their own cloud services. They're basically giving free reign to European providers, who do not own a single server in the US, and telling them to go ahead and dominate the market. Europeans should be thanking them, if anything!

        They could only dominate the European market though. Those companies wouldn't be able to do business with companies in the US. If they did, then the US government would just threaten them until they gave in - just seize all their US bank accounts, or seize all their payments, harass employees if they travel to the US, etc.

        It isn't as simple as you make it out to be. And it isn't just the US doing this sort of thing. Everybody wants the "Internet" to follow their local laws.

    • by Anonymous Coward

      Basically, the US passed a law which put companies between a rock and a hard place. And now they have to choose between long term profits, or America's zeal for security.

      And that's the trillion-dollar (literally, in terms of GDP for a country whose economy is based in large part on software) question: Microsoft has called the government's bluff. If the government is owned by economic interests, it will back down in order to grow GDP. If the government is owned by the security apparatus, it will sacrifice a

      • by jbolden ( 176878 )

        There is no question in my mind which way this is going to go. The implications of courts basically having no ability to issue subpoenas or warrants anymore is more or less the complete collapse of the ability of the US government to enforce any law regarding white collar crime. The implications of the USA companies losing out contracts to European cloud services is a few billion. This is like would you rather have a mosquito bite have your leg amputated.

        • Sorry, but when your courts violate the law of the country in question ... it comes down to a measure of sovereignty.

          Are you suggesting that Microsoft is exempt from the laws of Ireland because a US court says so? Or that it's Microsoft's problem?

          Microsoft is saying "this isn't us, this is you, and can you really do this?".

          Srroy, but when abroad, you are subject to local laws. And a US court should not be able to compel someone to break the law in another country.

          What if an Irish court demanded that US la

          • by jbolden ( 176878 )

            Well first off US counts can order Americans to break the laws of another country. A USA court could issue me a warrant to do something illegal in Ireland and if I failed to do so I'd go to jail. That's not even questionable. The claim on authority over US citizens is how the US government is able to arrest people in the small arms trafficking business in Africa or people abroad involved in slave trading of prostitutes or all sorts of things. US law applies to Americans whereever they are. What the Eur

    • by radarskiy ( 2874255 ) on Wednesday September 10, 2014 @10:53AM (#47872095)

      Your arguement against the PARTIOT Act might be better received if reserved for a case that had anything to do with the PATRIOT Act.

      This is just an ordinary, everyday order for an entity to turn over information that it is known to possess, the only exceptional point is "because the Internet" and the various entities that multi-national corporations split themselves up into to have their cake and eat it too.

      Microsoft USA has acces to mail relevant ot the case. It have been moved to storage owned by a different Microsoft entity in Ireland. Since Microsoft USA has access to it it should be reasonable for a US court-order that correctly follows due process to require that Microsoft USA provide the mail to the court. Otherwise, multi-nationals could just play a shell game with all their data and never have to comply with any nation's court orders ever while single-nation corporations could never enjoy the same freedom.

      An alternative method could very well be for the US to file a request in a Irish court to get the Irish authorities to obtain the mail if the US can show that it is within Irish and EU law, etc. It is correct to say that the former method should not be preferred merely because it is more convenient, but if the for method is more convenient and also follows due process and is legal then objections need to be a little more thorough. On the other hand, since there is now an appeal it may no longer be more convenient that opening a request in an Irish court.

      It may be in the latter case that it is against Irish or EU law to provide the mail, though there is every any discussion about why this case would run afoul of any EU privacy protections, etc.. Note that this would not absolve Microsoft USA from any obligations to the US court. It may very well be possible that Microsoft in its structuring of its multi-national divisions has created a scenario where either one division is in violation of the law in one jurisdiction or another division is in violations of the law in another division and sine this would be a structuring that Microsoft deliberately created I do no see where I would feel sympathetic towards them.

      • Re: (Score:3, Interesting)

        by gstoddart ( 321705 )

        Microsoft USA has acces to mail relevant ot the case. It have been moved to storage owned by a different Microsoft entity in Ireland. Since Microsoft USA has access to it it should be reasonable for a US court-order that correctly follows due process to require that Microsoft USA provide the mail to the court.

        So, your argument is that if Microsoft operates in North Korea, Iran, or any other country .. that those countries should also be able to force Microsoft to hand over any and all records on Americans i

        • by Anonymous Coward

          >Every court on the planet should be able to subpoena any record from a multinational because they want it?

          Well, duh. This is how the law works already.

        • by jbolden ( 176878 )

          So, your argument is that if Microsoft operates in North Korea, Iran, or any other country .. that those countries should also be able to force Microsoft to hand over any and all records on Americans if they see fit? Without showing probable cause in the the US or worrying about American laws?

          Yes. This question keeps getting asked of Americans and the answer is yes. Americans don't use global cloud services for sensitive information that would be illegal to export. They use regulated private clouds.

        • by Rich0 ( 548339 )

          So, your argument is that if Microsoft operates in North Korea, Iran, or any other country .. that those countries should also be able to force Microsoft to hand over any and all records on Americans if they see fit?

          It isn't a matter of "should." The fact is that those countries can do anything they have the power to do - that is what makes them countries and not corporations. You'd be a fool to store your personal data with a company that needs to keep a country like North Korea happy if you don't want the North Koreans to have access to your data.

          If you run a business selling swastikas, you'd be foolish to build all your infrastructure on servers owned by a company that counted on the German government for most of

        • Courts have power over entities under their jurisdiction. A US court has jurisdiction over Microsoft US. An Iranian court would have jurisdiction over Microsoft Iran (if it exists). A US court can issue orders to Microsoft US, and an Iranian court can issue orders to Microsoft Iran.

          The difference here is that Microsoft US is the controlling company, and the US court believes Microsoft US can issue orders to Microsoft Ireland, apparently even when that would require Microsoft Ireland to break Irish law

      • Otherwise, multi-nationals could just play a shell game with all their data and never have to comply with any nation's court orders ever while single-nation corporations could never enjoy the same freedom.

        You do realize they already do this with taxes right? Microsoft in Ireland is a distinct legal entity, and it not the same corporation as the one in Redmond. Otherwise Microsoft would pay taxes on its global income to the American government, as well as all of the localities in which they operate.

        The en

    • The solution to this is to use a 3rd company which is only legislated locally. This means MS could turn around and say it's not their data and it's not on their storage. They can then provide the details for the company in question to eventually realize they have to way or prying the data out of them.

  • Whatever this costs Microsoft in fines and legal costs is going to be paltry compared the the revenue they have likely been losing from overseas business since the Snowden revelations. Doing this puts on a good show that makes it look like they care about they are fighting the U.S. government to protect their customers. Deep down I wonder how many of their executives want to see Snowden locked up as well.
  • MS can sell data to anyone they want, including USG. If they win this, then they can charge USG a much higher price for access than the 'reasonable costs' for responding to a court order.

A committee takes root and grows, it flowers, wilts and dies, scattering the seed from which other committees will bloom. -- Parkinson

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