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

Who Next After IBM? (Bubbles Don't Last Forever)
the demise of companies with "ai" in their name/domain
GNU/Linux Estimated at 8% "Market Share" Today (in statCounter)
Days ago it said 7.1%, then 7.3% or 7.4%
IBM Stock Collapses and It's Only the Beginning
Will GAFAM soon follow and will any executives be arrested for the accounting fraud insiders have long cautioned about?
 
Like Kyndryl, Multiple Securities Fraud Investigations Into IBM
Remember what happened to Kyndryl
How Long Before GNU/Linux is Measured at 20% in Chad?
The main way to get people to adopt Vista 11 is to sell them a new PCs and in poor countries it happens a lot less
Making Techrights Faster Down Under (Australia and New Zealand)
there's more to life than speed
Strikes at the EPO Approved for the Rest of the Year, "€1,3 Billion Taken From Staff Income"
Intensity can be revised and increased over time
Focusing on What We Really Ought to Focus on
Today we'll focus mostly on EPO affairs
Violence is Not a Joke
"Police say Widdecombe killing was targeted but motive remains unclear"
How to Properly Measure the Performance of a Patent Office
A "contribution from staff [which] is published by SUEPO Munich."
EPO "Cocaine Communication Manager" - Part XIV - "Not One of Us" (How the Group Dubbed by EPO Insiders "Alicante Mafia" Pushes Out Talent, Replacing It With Friends)
misuses the EPO's budget like it is a fountain of money for his friends
LibreTech Collective Abandons Microsoft GitHub and All Other Proprietary Software
Each time a project eliminates control by a hostile party it stands to gain
Links 15/07/2026: US Regime "Cuts Two Utah National Monuments by More Than 90%", "Hormuz is Less Crucial Than It Was"
Links for the day
Gemini Links 15/07/2026: Old Computer Challenge, "Trial by Fire", LLM Slop Destroying Companies
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 14, 2026
IRC logs for Tuesday, July 14, 2026
Heshan de Silva-Weeramuni Becomes Program Manager at the Free Software Foundation (FSF)
Heshan's addition means that the FSF is growing after a solid financial year (best in years)
Michael McMahon Explains Distributed Denial of Service (DDoS) Attacks on the Free Software Foundation (FSF)
The real solution is a curb on botnets. A mitigation strategy, however, would involve going static.
Matters of Public Safety
"Police say Ann Widdecombe killed in 'targeted attack' as motive investigated"
The Register MS and Its Promotional Microsoft Content
It's not too hard to see what the business model of The Register MS is
IBM: From $306 to $212 in 7 Days, IBM Won't Go Up More Than 50% to Where It Was at 'Peak Vapourware'
There's a limit to how much or how long a company can fake its performance and its potential [...] Early this morning a few insiders ("traders") cashed in on their "pump-n-dump"
Red Hat Staff Needs to Start Looking for the Next Job
Workers can conveniently lie or deny it to themselves, but waves of PIPs ("silent layoffs") will sweep over more and more units or teams as the company runs out of money to play with
IBM the Next Bear Stearns
IBM cannot recover if all it has to show is vapourware
I'll Be Extremely Difficult for Microsoft to Sell Any XBox Consoles Now
Microsoft understands this
How Software Freedom Would Benefit Everybody
A society that denies control by greedy companies would do a disservice to monopolies and improve all services to citizens
Links 14/07/2026: Harsh But Also Fair Criticism of Hey Hi (AI) Slop, 'Open' AI Shuts Down Its Own Products as Funds Run Out
Links for the day
Gemini Links 14/07/2026: Old CD Binder and AWK
Links for the day
In Defence of Physical Tickets
Tickets are not some "app" and not some "code" on some "screen"
Microsoft Layoffs Not Limited to XBox (False Narrative in the Mainstream Media)
Microsoft is becoming less relevant and workforce reductions won't end any time soon
Links 14/07/2026: Plagiarism Spun as "Training", Zelensky Announces Leadership Shuffle
Links for the day
The Register MS Has Just Published "AI" Webspam That Mentions "AI" 54 Times. It Was Paid to Do This.
Who pays for all this "AI" hype or "buzz"?
Gemini Links 14/07/2026: Self-Advocacy Online; "The Internet Is Dead: How the Web Lost Its Human Soul"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, July 13, 2026
IRC logs for Monday, July 13, 2026
Modern Technology Harms Women More Than Men (Because the 'Tech Bros' Who Dominate STEM Have a Poor View of Women)
“Privacy protects us from abuses by those in power, even if we're doing nothing wrong at the time of surveillance.”
Internet Relay Chat Trolls Are Not Expressing Opinions, They Are Saboteurs
For the record
Links 14/07/2026: "The Freedom of Information Act Is in Serious Trouble"; Irish Datacenters Use Up Almost 25% of Total Energy
Links for the day
The Register MS: "AI" Puff Pieces for Sale, Not Journalism at All, Just "Webspam"
The Register MS isn't the sole culprit
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 12, 2026
IRC logs for Sunday, July 12, 2026
How We Do Techrights (and What's Changing Next Week)
Many former news sites no longer yield much non-meaningless news (not anymore); there's a gap to be filled