Microsoft has lost the first round in its fight to stop the US authorities from seizing customer data stored inside its overseas data centers.
Following a two-hour hearing before the US District Court for the Southern District of New York on Thursday, District Judge Loretta Preska ruled that a US warrant ordering Microsoft to hand over its customers' emails and other data was valid, even though the data in question was stored on servers in Dublin, Ireland.
Redmond had argued that because the data was managed by one of its foreign subsidiaries, local law and not US law should apply. Judge Preska disagreed.
"It is a question of control, not a question of the location of that information," she said.
More privacy than VPN/Crypto, but it's interesting nonetheless. Looks as if multinational companies are now reaping the costs of transglobalism, rather than just the benefits.