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

BetaNews Appears to Have Fired All Of Its Staff
Even serial sloppers
Gemini Protocol Turns 6 on Friday
Active (online) Gemini capsules are estimated by Lupa at over 3,000
 
Links 17/06/2025: Windows TCO and G7 Rifts
Links for the day
The Right to Know and the Freedom to Report on Crime (at the Higher Echelons)
I'd like to do the same thing for the next 20 years
After the Web Becomes Slopped to Death
A lot of people are rightly fed up with the "modern" Web
Microsoft's Windows is a Niche Operating System in Africa
African nations aren't a large contributor to Microsoft's income, but if many African nations move away from Windows, then the monopoly is at risk
Like Most Social Control Media, Microsoft LinkedIn is Collapsing
One reason for Microsoft acquisitions is debt-loading, i.e. offloading and burying its debt
Microsoft is Losing Its Richest Clients
Unlike some very poor countries, Germany and the EU are a considerable source of income to Microsoft
Proprietary Means Not Secure
Proprietary software tends to rely on secrecy, not good design
Slop in 'AI' Clothing is a Passing Fad, We'll Get Past It (Like Blockchain Before That)
Many people cheat in exams using slop and there are professionals that try using slop as a "shortcut"
GNOME Does Not Campaign Against Microsoft, KDE Does
It's good to see that KDE is still active in promotion of Free software - a term that it uses
Slopwatch: BetaNews, Linuxsecurity, and Other Prolific Slopfarms
name and shame the sites that establish such proliferation of slop
Gemini Links 18/06/2025: Birch Lake and Loon Pond
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 17, 2025
IRC logs for Tuesday, June 17, 2025
Links 17/06/2025: "The Grift Economy" and Kubernetes Does Proprietary
Links for the day
Microsoft's "FUD-as-a-Service" (Against Linux) Not Functioning Well
This is the kind of contribution companies like Microsoft and Google have to offer to society
Betanews Becoming a Slopfarm is "Betanews Growing Alongside You", According to Betanews
Their first 'article' in over two weeks is 52% "AI-generated" (slop), 33% mixed (edited slop), 18% human-written, says an advanced scanner.
Coffee Day and LLM Sloppers
The LLM slop "bros" are a lot like fake-money bros; they lie to people, they boast that they lie to people, and they're generally bad people, BS artists in colloquial terms
Double-Dipping the Docket for Microsoft Glory and Censorship of Microsoft Critics
same lawyer, same barrister, all US, all Microsoft
TheLayoff Censorship of IBM Threads Has Gone Truly Ludicrous
we do not argue that TheLayoff should not cull LLM slop
More Stallmanites Added to FSF Board and Summer Fundraiser Commences
There's some good news from the FSF
Gemini Links 17/06/2025: Consistency and Notes About NixOS
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 16, 2025
IRC logs for Monday, June 16, 2025
July 2 2025 Would Not be First Big Wave of Microsoft Layoffs Before Major National Holiday
July 2 or 3 mark the start of a very long weekend in the US
IDG's NetworkWorld Seems to Have Just Become LLM Slop
If IDG (now controlled by China) does that in at least one site, why not the rest? Only a matter of time?
Gemini Links 16/06/2025: Free Lunches and Bookmarklet for Mastodon
Links for the day
IBM: Less Than a Month's Severance for Each Decade of Service
Yes, decade!
Taking a Lesson From Denmark and Greenland? Iceland Shows New Lows for Windows, All-Time Highs for GNU/Linux
If Microsoft sabotages systems of judges at the Hague (in order to appease the insane man who wanted to invade Greenland), why won't its neighbour Iceland take note?
BetaNews Has Just Deleted Its Latest 'Article' or Got Cracked Again and Restored From Outdated Backup Again
BetaNews seems to be in some serious trouble right now
Software Freedom is "Activism" Because the Corporate Agenda Revolves Around Bribery, Deceit, and Betrayal
At the end Software Freedom will win because it's on the same side as truth and lawfulness
The EPO, Europe's Largest Patent Office, Admits Outsourcing to Microsoft Slop
Their sole goal is to make more money
Links 16/06/2025: EchoLeak and NASA Teaming up With India
Links for the day
The Better the Understanding or the More Nations Understand the Threat Posed by Microsoft, the Faster It'll be Eradicated
We believe that the thing to advocate is self-hosting and Free software... A lack of simplicity or absence of alternatives is a form of vendor lock-in
A Week of Sunlight
They say transparency is like sunlight to a vampire
"Linux" Sites That Went Astray
there are even worse things than shutdowns
Links 16/06/2025: Climate, Wildfires, Breaches, and Monopolies
Links for the day
Links 16/06/2025: Summer in Finland and Misunderstandings
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, June 15, 2025
IRC logs for Sunday, June 15, 2025