How Microsoft’s data case could unravel the US tech industry

‘Saying “no” to the government is never a good idea. But Microsoft had little option.

In a little under a week, Microsoft will again head to a Manhattan court in an effort to try to quash a search warrant, sought by the US Justice Department, in an international drugs-related case.

The warrant itself isn’t out of the ordinary, but it does contain a crucial facet: It is demanding data on an email account stored by Microsoft in a datacenter in Ireland.

Microsoft argued the search warrant goes way beyond the means of a traditional search warrant because it forces the company to hand over data it stores in another country, which in itself is subject to different laws and regulations.

This one case will determine — effectively — how far the US can use its own legal system to compel companies doing business within its borders to hand over data it stores overseas.’

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