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Landmark ruling could pose serious concerns for European firms wary of the cloud



From V3:
The judgment from magistrate judge James Francis in New York on Friday came in response to a challenge from Microsoft that it should not have to hand data over regarding an Irish customer, as the information is stored overseas.

Microsoft deputy general counsel David Howard argued: "The US government doesn’t have the power to search a home in another country, nor should it have the power to search the content of email stored overseas."
  US judge rules cloud firms including Microsoft and Google must hand over data stored overseas