Bonum Certa Men Certa

EPO and Microsoft Collude to Break the Law -- Part IV: The US CLOUD Act Passes Without Public Debate

Previous parts:



Cloudwashing law
Congress quietly slips cloud-spying powers into page 2,201 of emergency spending bill



Summary: "In 2013, the DoJ demanded that Microsoft grant it access to emails related to a narcotics case from a Hotmail account hosted in Ireland."

When Edward Snowden blew the whistle on the National Security Agency's PRISM program in 2013 and revealed what many had suspected – namely that US intelligence agencies were collecting vast amounts of data not only from US citizens, but from all around the world – public opinion received a badly needed wake-up call about the dangers of mass surveillance.



In the wake of these revelations, many countries became increasingly concerned about who could access their national information and the potential implications of cross-border data transfers. These concerns provided a catalyst for discussions focussing on the topic of what has come to be called "digital sovereignty" and/or "data sovereignty".

Another incident that put these topics into the spotlight was a dispute between Microsoft and the US Department of Justice (DoJ) which started in 2013.

"Despite having a major impact on how tech companies can be obliged to share user data with US and foreign governments, the CLOUD Act was passed by Congress without any public debate on 21 March 2018 and entered into force two days later."In 2013, the DoJ demanded that Microsoft grant it access to emails related to a narcotics case from a Hotmail account hosted in Ireland. Microsoft refused, arguing that a warrant issued under Section 2703 of the Stored Communications Act could not compel US companies to produce data stored in servers outside the US and that compliance with the requested transfer would result in the company breaking EU data protection law.

The initial ruling was in favour of the DoJ, with the presiding judge concluding that American companies “must turn over private information when served with a valid search warrant from US law enforcement agencies". Microsoft appealed to the US Second Circuit Court of Appeals which ruled in its favour in 2016 and invalidated the warrant. In response, the DoJ appealed to the US Supreme Court.

In March 2018, while the case was pending before the US Supreme Court, the US Congress passed the Clarifying Lawful Overseas Use of Data (CLOUD) Act which amended and extended the ECPA (Electronic Communications Privacy Act) and the SCA (Stored Communications Act).

"This highly controversial measure was buried on page 2,201 of a voluminous 2,232-page spending bill - the Consolidated Appropriations Act of 2018 - which was tabled and adopted as an emergency measure to prevent an impending government shutdown."Following agreement from both the DoJ and Microsoft, the US Supreme Court determined that the case had been rendered moot by the passage of the CLOUD Act and the issuing of a new warrant under the terms of the new legislation.

Despite having a major impact on how tech companies can be obliged to share user data with US and foreign governments, the CLOUD Act was passed by Congress without any public debate on 21 March 2018 and entered into force two days later.

This highly controversial measure was buried on page 2,201 of a voluminous 2,232-page spending bill - the Consolidated Appropriations Act of 2018 - which was tabled and adopted as an emergency measure to prevent an impending government shutdown.

Senators Rand Paul from Kentucky and Ron Wyden from Oregon raised procedural objections to the manner in which the CLOUD Act had been sneaked in as an appendage to the spending bill but ultimately they failed to block or stall the bill's adoption.

Ron Wyden on CLOUD Act
Ron Wyden complained about the CLOUD Act but failed to block its adoption



Privacy advocates at groups like the American Civil Liberties Union, the Center for Democracy and Technology and the Electronic Frontier Foundation criticized the legislation as “a new backdoor around the Fourth Amendment" which permitted the circumvention of constitutional protections against unreasonable searches by law enforcement agencies. They also argued that it could lead the US to send user data to police in countries known for abusing the human rights of their citizens.

"Privacy advocates at groups like the American Civil Liberties Union, the Center for Democracy and Technology and the Electronic Frontier Foundation criticized the legislation as “a new backdoor around the Fourth Amendment" which permitted the circumvention of constitutional protections against unreasonable searches by law enforcement agencies."On the other hand, US tech giants such as Microsoft, Google, Facebook, Apple, and Oath, applauded the legislation and sent a joint letter to the US Senate proclaiming that the CLOUD Act represented “notable progress to protect consumers’ rights".

The main effect of the CLOUD Act was to strengthen the powers of US law enforcement and intelligence agencies to access data held by US companies on foreign soil.

In a nutshell, the CLOUD Act amounted to a consolidation and expansion of the arrangements established by the earlier 2001 PATRIOT Act which had significantly extended the government's powers of access to data held by US-based global providers, irrespective of the storage location of that data.

This might help to explain why those pushing for the adoption of the measure preferred to avoid public debate by sneaking it in as a hidden appendage to an emergency spending bill.

On the other side of the Atlantic, the passage of the CLOUD Act gave a new impulse to the ongoing political debate about "digital sovereignty".

A year after the passage of the Act, an article in the French paper Les Echos reported that "[m]any observers feel that American justice could be deploying [the Cloud Act] for purposes of economic espionage.”

"In a nutshell, the CLOUD Act amounted to a consolidation and expansion of the arrangements established by the earlier 2001 PATRIOT Act which had significantly extended the government's powers of access to data held by US-based global providers, irrespective of the storage location of that data."The French politician Ms Laure de la Raudiere who co-chairs a parliamentary cyber-security and sovereignty committee described the CLOUD Act as "a wakeup call for Europe to accelerate its own sovereign capabilities in the data sector".

In response to the concerns articulated by various political and business leaders, the French government called upon French companies to rely on "CLOUD-Act-safe" data providers.

In the meantime, on 25 May 2018, a few months after the adoption of the CLOUD Act by the US Congress, the General Data Protection Regulation (GDPR) entered into effect. In the next part of this series we will look at the GDPR and its implications for transatlantic data traffic between the EU and the US.

Recent Techrights' Posts

Slopwatch: A Cause for Hope, the Hype is Dying
For about a month we showed that becoming a slopfarm - for several weeks - resulted in utter failure and ruin for BetaNews
The EFF Sided With the Team That Strangles Women and Tells Women to Kill Themselves
They say that apathy and inaction are a form of a "stance"
Exemplary List of Things That Are Not Artificial Intelligence or Even Intelligence
The "age of AI" or "era of AI" or "AI revolution" mostly boils down to rebranding, just like "the cloud"
GitHub Copilot Can Cause the Bankruptcy of GitHub to Come Sooner and GitHub to be Shut Down Just Like Skype
Some publicly available information suggests that even for each paid subscriber for plagiarism (LLM 'coding') GitHub Copilot still loses more money than it makes
 
EPO Staff Committee on Harassment in the Workplace
slides
Adding the Voice of Writers to UK SLAPP Reform
The journey to repair antiquated (monarchy era) laws will likely be long
EPO Takes More Money From Staff for Speculation (Pensions), Actuarial Study Explains the Impact
"The key change in this year’s Actuarial Study, due to cascading the new “risk appetite” from the financial study, is a significant increase of the total pension contribution rate of 5.7 percentage points, up to a total of 37.8%. This is driven by an unprecedented decrease in the discount rate of 105 bps down to 2.2%."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, July 11, 2025
IRC logs for Friday, July 11, 2025
Microsoft - Like IBM - Does the "Relocation" Tricks (Start Over Elsewhere, Then Get Sacked by Microsoft)
It is a "low blow" or a "dick move"
After the Free Software Foundation's Campaign to Raise Money Let's See Campaigns to Finish Off Microsoft (Vista 11, GitHub etc.)
Microsoft is in effect collapsing
Your Publications Have No Major Impact Unless or Until You "Get Some Heat"
we're on the right track
Links 11/07/2025: Censorship Worsening, 3D Printing Success Stories, UK and France Unite Around Nukes
Links for the day
Gemini Links 11/07/2025: Zorin OS and Scriptonite Updates
Links for the day
Links 11/07/2025: Hardware, Russia, and China
Links for the day
Links 11/07/2025: Intel Collapsing and Microsoft Resorts to Bribery to Push Slop Via Obligatory Education
Links for the day
"Nat [Friedman] and [the Serial Strangler From Microsoft] Were Always Exceptionally Close," Says Former Housemate and Colleague
Now Alex (hiding behind another name when that suits him) not only attacks women but also people who merely report what he did to women
New Letter From the European Patent Office Explains How the Office Plots to Grant Many Illegal Patents, a Self-Fulfilling Prophecy of 'Growth'
Open letter to Mr Rowan (VP1) and Mr Aledo Lopez (COO)
Abuse of Process
5RB is employing people who help violent men
What Microsoft's Nat Friedman and Microsoft Lunduke Have in Common
"Get in da car; No time to explain, loser"
Microsoft and IBM Don't Have Much of a Future (They Mostly Pretend at This Point)
IBM and Microsoft are in some ways alike but in many ways different
It's Not Just Twitter (or X.com) That's Dying, Microsoft's Equivalent is Dying Also
Unable to find a business model
Wayland is Bad for the Planet
If you use Wayland, it'll take you longer to accomplish tasks and you will consume more energy (or battery life)
Legitimising Those Who Sabotage You
Microsoft is a very malicious company
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 10, 2025
IRC logs for Thursday, July 10, 2025
On Microsoft Layoffs
we might be looking at about 60,000 Microsoft layoffs since 2023
EPO Management Already Breaks Its Own Promise (Lie) on "Bringing Teams Together"
This gut-punching move happened just 2 days ago
Gemini Links 11/07/2025: Occupation of 2025 and "Old Man Yells At Soundcloud"
Links for the day
Our Lawsuits Against the 'Cancel Mob' (Ringleaders) Helped Reduce Anti-Free Software Online Abuse
That's not to say that lawsuits are the best way to handle terrible people. But that can help.
Tomorrow is the Last Day of the Fund-Raising Campaign of the Free Software Foundation (FSF)
They will probably extend the date, as usual
Fixing Patents in Europe, Little by Little (by Transparency and Reporting of Suppressed Facts)
Tomorrow and throughout the weekend we shall focus some more on the EPO
The Two Lies Microsoft is Telling in "the News" This Week (to Distract From Layoffs and Decreased Interest in Slop/Chaff)
Microsoft is run by liars and frauds who SLAPP critics
Tux Machines Already Destroyed SLAPPs
Attacks on the mere publication of GNU/Linux news won't be tolerated
PCLinuxOS is Available for Download Again
PCLinuxOS is important to us also because its founder, back then the partner of Susan, helped create Tux Machines more than 21 years ago
Links 10/07/2025: Microsoft E-mail 'Services' Collapse Again, "Yet Another Strava Privacy Leak"
Links for the day
Gemini Links 10/07/2025: Automating Git Repo Updates and Small Web 'Zine'
Links for the day
GNU/Linux Leftovers
mostly Linux stuff
Audiocasts/Shows: Going Linux, FLOSS Weekly, and RHEL Clones
3 new picks
We Are Already Fighting - With Considerable Success - SLAPPs in the UK
we intend to tell the full story
Bullies With Pens and Papers (or Apple Macs With Templates)
Not all barristers are evil, but there are perhaps "rotten apples"
Slopwatch: webpronews.com, linuxsecurity.com, linuxjournal.com
a pile of trash disguised as 'articles'
Links 10/07/2025: Linda Yaccarino Divorces MElonazi Site, Wildfires Hit Syria
Links for the day
The History and the Policy of the EPO's Stance on Breastfeeding (Corporate Monopolies Versus Babies' Health)
"The Case for Introducing a Breastfeeding Policy at the EPO"
Gemini Links 10/07/2025: Inventing Chords and "Nightmare Boss"
Links for the day
Igor Ljubuncic Once Again Shows That for Technical Reasons Wayland Still Sucks, Performs Considerably Worse Than What Existed for Decades
That is aside from compatibility factors and other crucial factors
Links 10/07/2025: "Apple Vs The Law" and Twitter Became Full Nazi Bar
Links for the day
Unable to Find Anyone to Work as Their Media Lawyer, Brett Wilson LLP Will Continue Losing Female Staff
What sort of sick person would wish to join Brett Wilson LLP to carry this baton?
Microsoft-Sponsored Propaganda Site Has Removed False 'Hit Piece' About Dr. Stallman (With Fake and Misrepresented Imagery) But Only After 4 Years
So they only removed that page some time around 2025, i.e. about 4 years after it had been published
Always Check Your Inputs
Garbage in, garbage out. Or wrong assumptions, wrong corollary.
Dan Neidle Said That Tax Evasion Facilitator Mr Zahawi (Working to Silence Bloggers Through Brett Wilson LLP) Targeted Not Only Him (But The Others Kept Quiet)
"Mr Neidle said after repelling Mr Zahawi he was contacted by bloggers and tweeters who had received similar threats. They deleted their work “and in most cases never commented publicly on anything again”."
SLAPP Funding Transparency Urgently Needed in the UK and Elsewhere (in Practice, Not Just in Theory)
Writing about crime - including Microsoft crime - is not a crime
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 09, 2025
IRC logs for Wednesday, July 09, 2025
Elodie Bergot Still Doing Illegal Things at the EPO, Based on the Local Staff Committee Munich
They keep taking away from the staff while compelling the staff to do illegal things