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

Weaponisation of For-Profit Dockets - Part I: Hiding Behind Lawyers (or Guns for Hire) After Abusing Many People and Even Strangling Women While Microsoft Paid Salaries
This whole thing is very typical of the Microsoft and Bill Gates mindset
From EPO to "MAGA Regime": A Shift Away From Reality to Fake News and False Metrics
Disbelief in itself isn't a bad thing; but the problem is that people are taught to believe rich people in suits more than they believe others
Skype is Officially Dead Today and This is Why People Should Use Free Software Instead (Goodbye, Microsoft)
It's also a good reminder of why people should move to GNU/Linux
'Simple Articles' in MyGemini Just One of Many New 'Sites' in Geminispace
Geminispace has grown fast lately; it's turning 6 next month
 
Making Site Archives More Easily Accessible (Approaching 50,000 Blog Posts)
Efforts to censor us have always backfired badly
Weaponisation of For-Profit Dockets - Part II: Hiding Behind Lawyers and Barristers Who Lack Standards so as to Engage in Classic Corporate Extortion
They're trying to scare people and they misuse their licence to operate
Links 06/05/2025: LLMs/Chatbots Attract More Scrutiny (Getting Worse Over Time), PwC Has Many Layoffs
Links for the day
Thanks for listening. How can this Morse feed be further improved?
Right now any and all feedback on the audio would be helpful
statCounter: Bing's Market Share Lower Right Now Than It Was When LLM Hype Began (With "Bing Chat")
If anybody gains at Google's expense in search, it is BRICS' alternatives such as Yandex
Gemini Links 06/05/2025: Failure and Proxmox Cluster
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, May 05, 2025
IRC logs for Monday, May 05, 2025
Links 05/05/2025: TikTok Still a Romanian Woe/Foe, Signal Perils Showing
Links for the day
Gemini Links 05/05/2025: Debian and GNOME and a "Welcome to Simple Articles"
Links for the day
Links 05/05/2025: US Economy Shrinks, US Presidency Spreading Deepfakes
Links for the day
Links 05/05/2025: Breaches, Environment, and Conflicts
Links for the day
SUSE the Company Now Uses LLM Slop to 'Write' Its Blog, What Does That Tell Us About SUSE?
There are many giveaways
Richard Stallman is in Alicante Today to Give a Talk, Czech Republic in Two Days (Wednesday)
Of course he can deliver the talk in Spanish
Gemini Links 05/05/2025: XL Bullies and Luddites
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, May 04, 2025
IRC logs for Sunday, May 04, 2025
Links 04/05/2025: Science, Conflicts, and Monopolies
Links for the day
GNU/Linux Above 7% in Bulgaria, Rising Just Like in Most of Europe
Up to 7%, not counting Chromebooks
Data Shows Largest EU Economies Shifting to GNU/Linux
all-time highs
statCounter Says Only One in 6 Web-Connected Clients in Hungary Are Using Windows, iOS Almost Bigger Than Windows Now
Hungary is a cautionary tale in the world of European (or Russian) politics
Many Reports About Microsoft's Financial Report/Performance Are False, Fake News, Churnalism/Parroting, and LLM Slop (Machine-Generated Lies)
Even if you see a thousand sites saying that Microsoft is performing well ask yourself why the company is rushing to fire tens of thousands of workers and cancelling datacentres
Links 04/05/2025: FCC Turning Into MAGA’s Censoring Machine, SEC Pressured to Delist Chinese Companies
Links for the day
Gemini Links 04/05/2025: Historical Artifacts and Date Calculations in POSIX Shell
Links for the day
In the First 3 Months of 2025 GAFAM Debt Rose by More Than $14.4 Billion
That's based on their official statements
10-Step Strategy to Get BRETT WILSON LLP ("Gun for Hire"), Microsoft's Serial Strangler, and the Serial Defamer to Compensate Techrights and Tux Machines for Years of SLAPPs and Abusive Litigation
There's no room or capacity for forgiveness here; enablers and protectors of crime need to be scuttled and pay up in full
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 03, 2025
IRC logs for Saturday, May 03, 2025