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

Judgment: French army vanquishes German FSFE on Hitler's birthday, Microsoft contract dispute (1716711)
Reprinted with permission from Daniel Pocock
Projection Tactics - Part IV: SLAPP by Americans Against Techrights (UK) to Hide Serious Abuses Against American Women
"PRs need to stop being complicit in suppression of information via SLAPPs"
The Grapevine Says IBM's American RAs (Mass Layoffs) Soon to Follow European RAs, PIPs and "Reviews" as Pretext for a Likely Baseless Dismissal
The days of honourable corporations and work ethics are long gone it seems...
 
Richard Stallman's First Talk in US College Since 2018: Videos and Photos
There are some backstories
Judge Richard Oulevey (Grandcour Choeur, Tribunal Vaud) & Debian shaming abuse victims and witnesses
Reprinted with permission from Daniel Pocock
EDPB/CNIL privacy expert Amandine Jambert (cryptie, FSFE) implicitly admitted lying about harassment when she resigned admitting conflict of interest
Reprinted with permission from Daniel Pocock
Links 24/01/2026: TikTok Controlled by Alt Reich in US Now, White House Shares Fake, Manipulated, Misleading Images Already
Links for the day
Dirty Laundry at Debian and Elsewhere
We cannot just brush aside real issues involving real people and their families
Illegal, Unconstitutional Kangaroo Court for Patents Drops the Masks, Shows Its Real Purpose is to Serve Multinational Monopolists and Crush European SMEs
Europe (or the EU) is rapidly becoming a corporate project, not a unified governance initiative
The "Alicante Mafia" - Part X - EPO Strikes to Begin Next Week
Things gradually escalate this month
Gemini Links 24/01/2026: Snow, Boxing, and Lisp is Fun
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, January 23, 2026
IRC logs for Friday, January 23, 2026
Senior management and HR email privacy: Martin Ebnoether (venty), Axel Beckert (xtaran) & Debian abuse in Switzerland
Reprinted with permission from Daniel Pocock
Pierre-Elliott Bécue, ANSSI & Debian cybertorture
Reprinted with permission from Daniel Pocock
MJ Ray, Micah Anderson & Debian on drugs, prostitution at DebConf6 fight
Reprinted with permission from Daniel Pocock
Excellence in Ethics: a list of victories for the truth
Reprinted with permission from Daniel Pocock
Richard Stallman Giving Public Talk, Answering Questions From the Audience
We understand (from the organisers) that there will be a video of the talk
Forbes Covers in 2026 What Was Already Clear for Over a Decade: Microsoft's BitLocker 'Encryption' is a Back Door
One that's promoted by the loudest boosters of UEFI 'secure boot' as well
Links 23/01/2026: Minus 24 deg C in South Korea, "Iran Internet Blackout Passes Two-Week Mark"
Links for the day
Gemini Links 23/01/2026: "Witch Watch" and English on the Net
Links for the day
Reminder That "Linux" in the Site's Name (and Domain) Does Not Imply Authentic Journalism About GNU/Linux
the sad fact that some once-legitimate sites became slopfarms
Further Comments Illuminate Observations Regarding IBM's Layoffs (RAs) Plan for Europe
Some shed light on the expected scale
Links 23/01/2026: Growing Censorship, Intel Falls (Another Bubble, Propped Up by Cheeto Bailout), and Huge GAFAM Layoffs Continue
Links for the day
Working for Freedom Makes You a Target
it's not about what you do but about who gets served
Appeasing Bullies Doesn't Work
The reason we're still here and very active is that we're good at what we do
Claim That IBM Mass Layoffs Began Again in Europe, With Rumours It'll Close Offices
Unless IBM issues a statement (admission) to the media or issues WARN notices (in the US), the lousy media will simply assume - however wrongly - that nothing is happening and there's nothing to report
How Microsoft Will Tell Shareholders That the Business is Failing in a Few Days
It'll resort to "AI" storytelling (lying about slop having potential for some unspecified future year)
Flying to See Today's Talk by Richard Stallman
It's probably not too late to reserve a seat for today's talk
The Fall of Freenode Didn't Kill IRC and the Web's Issues (Not Limited to LLM Slop) Didn't Kill Everything
As long as there are enough people willing to keep the simple (or "old") stuff it'll refuse to die
GAFAM Layoffs by Performance Improvement Plans (PIPs) Hide the Real Scale of Their Financial Troubles
the "official" numbers of layoffs will never tell the true story
'Domesticated' Animals Not More Valuable Than Free-range Wildlife, Proprietary ('Commercial') Software Isn't Better Than Free Software
the proprietary software giants (companies like SAP or Microsoft) have a lot of lobbyists
The "Alicante Mafia" - Part IX - EPO Budget Funnelled Into Cocaine and Moreover Rewards Cocaine-Addicted Management for Getting Busted by Police
Any day that passes without European media and European politicians doing anything about it merely discredits the media and the EU (or national governments)
Richard Stallman Won't Talk About "AI", He'll Talk About Chatbots and LLMs Lacking Any Intelligence
This really irritates people who dislike the message; so they attack the person
Slopfarms Still Fed by Google, Boosting Fake 'Articles' That Pretend to Cover "Linux"
At this point about 80-90% of the search results appear not to be slopfarms
Gemini Links 23/01/2026: The Danish Approach to Deepfakes and Random vi Things
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, January 22, 2026
IRC logs for Thursday, January 22, 2026
Five Years Ago, After We Broke the Story About Richard Stallman Rejoining the FSF's Board, All Hell Broke Loose (for Me and My Family)
They generally seem to target anyone who thinks Richard Stallman (RMS) should be in charge or thinks alike about computing
Links 22/01/2026: Slop Fantasy About Patents, Retirement in China Now Reached at Age Seventy
Links for the day
Gemini Links 22/01/2026: Why Europe Does Not Need GAFAMs, XScreenSaver Tinkering, FlatCube
Links for the day
Salvadorans' Usage of GNU/Linux Measured at Record Levels
All-time high
Links 22/01/2026: Ubisoft Layoffs Disguised as "RTO", US "Congress Wants To Hand Your Parenting To GAFAM", Americans' Image Tarnished Among Canadians (Now Planning to "Repel US Invasion")
Links for the day
10 Easy Steps to Follow for Digital Sovereignty in Nations That Distrust GAFAM et al
When "enough is enough"
No, the Problem at IBM/Red Hat Isn't Diversity
Microsoft Lunduke also openly shows his admiration for Pedo Cheeto
Do Not Link to Linuxiac Anymore, Linuxiac Became a Slopfarm
now Linuxiac is slop
Dr. Andy Farnell Explains Why Slop Companies Like Anthropic and Microsoft 'Open' 'AI' Basically Plunder and Rob People
This article was published last night at around 10
Richard Stallman (RMS) at Georgia Tech Tomorrow
After the talk we'll write a lot about "cancel culture" and online mobs fostered and emboldened in social control media
Software Patents by Any Other Name
There is no such thing as "AI" patents
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, January 21, 2026
IRC logs for Wednesday, January 21, 2026
The "Alicante Mafia" - Part VIII - Salary Cuts to Staff, 100,000 Euros to Managers Busted Using Cocaine (for Doing Absolutely Nothing, Just Pretending to be "Sick")
Today we look at slides from the union
Gemini Links 22/01/2026: Forest Monk, Aurora Observation, and Arduino Officially Launches the More Powerful Arduino UNO Q 4GB Single-Board Computer
Links for the day
Next Week is Close Enough for Wall Street Storytelling About 'Efficiency' by Layoffs for "AI"
This coming week GAFAM and others will tell some creative tales about how "AI" something something...
Google News Still a Feeder of Slop About "Linux", Which Became Rarer in 2026
Our main concern these days is what happened to Linuxiac. Bobby Borisov became a chatbots addict.