Microsoft and four other large American technology companies are using a Manhattan court case to argue the United States government has no right to seize computer data stored outside the country, according to The Associated Press.
Companies that host services over the Internet and sell remote data storage, known as "cloud computing," say they stand to lose billions of dollars in business if emails and other files they house overseas are seen vulnerable to U.S. snooping, the AP reported.
Two phone carriers, Verizon and AT&T, have joined the fight, along with Apple and Cisco Systems, submitting arguments in support of Microsoft in recent days to a district judge prior to a late-July hearing, the AP reported.
A Microsoft vice president wrote in a court document that the company offers its cloud services in more than 100 countries and tries to keep a customer's data, including email, calendar entries and documents, in a data center near where the customer is located for easy and cost-effective access, according to the AP.
Microsoft said in court papers this month that the ruling threatens to rewrite the Constitution's protections against illegal search and seizure, damage U.S. foreign relations and "reduce the privacy protection of everyone on the planet," the AP reported.
"Over the course of the past year, Microsoft and other U.S. technology companies have faced growing mistrust and concern about their ability to protect the privacy of personal information located outside the United States," Microsoft said, according to the AP. "The government's position in this case further erodes that trust, and will ultimately erode the leadership of U.S. technology companies in the global market."
In court papers, prosecutors said Microsoft's position that the warrant effectively authorizes law enforcement agents to conduct a search in Ireland is "simply not so," the AP reported.They said the warrant is the functional equivalent of a subpoena compelling the Redmond, Washington-based provider to review its stored records and produce relevant material.
Magistrate Judge James C. Francis referred to the warrant as a "hybrid, - part search warrant and part subpoena" - and said it has long been law that the recipient of a subpoena must produce information in its possession regardless of where it is stored, according to the AP.
Microsoft said it has encountered "rising concerns among both current and potential customers overseas" and some customers have cited the ruling as they chose a foreign provider to store data, the AP reported.
"If this trend continues, the U.S. technology sector's business model of providing 'cloud' Internet-based services to enterprises, governments, and educational institutions worldwide will be substantially undermined," Microsoft said, according to the AP.
