It started as an innocuous order by the US Federal Court forcing tech giant Microsoft to provide an email record from one of its cloud database customers held in a database in Ireland. The issue has not only roped in other tech firms for which data forms the core of operations, but also other interested parties including the government of Ireland.
While battle lines in the technology world are always being drawn between the largest players, this time they have coalesced together to fight for the privacy of their databases. At the forefront are rivals and key players in the industry including Apple, and Cisco, who have filed an Amicus Curiae application.
Others who have filed separate applications enjoin in the suit as friends of the court include Verizon, eBay, AT&T, and Amazon. Media organizations and industry bodies including CNN, Fox, ABC, the Guardian, National Association of Manufacturers and the Chamber of Commerce have also voiced their support to Microsoft as the hearing is set to commence.
With other avenues including the hitherto effective Mutual Legal Assistance Treaty (MLAT) these companies are asking why the government wants to jeopardize every gain it has made so far on enhancing right to privacy.
Such a move would adversely affect a wide range of industry stakeholders including remote database administrators such as Remote DBA.
Background
The whole issue goes back to 2011 when Microsoft launched the Office 365 database in Dublin, Ireland. Gordon Frazer the then UK MD was categorical that the company would respect the US Patriots Act as a responsible American corporate citizen.
With the 2013 damning revelations by Snowden regarding NSA’s espionage activities everything started falling apart and Microsoft moved fast to assure its European cloud customers that their data was safe. Customers received assurance of consanguinity in databases used to store their data. As such, the Dublin data was to have no hardcopies in the US.
Current Case Implications
The US government applied the US Stored Communications Act (SCA), which most database experts argue is a Stone Age relic. The Act requires American firms to disclose any records held overseas when a valid subpoena or warrant is in place.
This is exactly what the government did by moving to court and compelling Microsoft to provide the email records.
Microsoft Rejoinder
In countering the government’s decision, the company noted that SCA only applies on the US soil and that it violates international laws. Moreover, the tech giant’s counsels argued that the email records on the cloud belong to the customer and do not constitute business records as envisaged under SCA.
The District Court for the Southern District of New York disagreed with the company’s position arguing that these were business records and the Irish subsidiary managing the database was under whole ownership of the US mother company.
The Second Circuit Appeals Court agreed with this assertion back in April 2014. With the company standing its position, it was held in contempt in September 2014 deliberately in order to exploit the only option left -- the Supreme Court.
The argument against giving the US government access to cloud data stored in other countries is the impact on fundamental rights on privacy, international relations and damage in trust in the technology industry.
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