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The US CLOUD Act and European Data Concerns
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The US CLOUD (Clarifying lawful Overseas Use of Data) Act of 2018 grants US law enforcement agencies the ability to compel US-based technology companies to provide data stored on servers irrespective of where those servers are located. This has raised significant concerns in Europe regarding data privacy and sovereignty.
CLOUD Act: Origins and Provisions
The CLOUD Act was enacted to address uncertainties created by the Microsoft v. United States Supreme court case (Supreme Court Ruling). Prior to the CLOUD Act, it was unclear whether US law enforcement could obtain data stored on foreign servers via a US warrant. The CLOUD act clarified that they could, under certain circumstances. It establishes two primary mechanisms for accessing data:
* US-Based Provider Access: US companies can be compelled to produce data, even if it’s stored abroad.
* Executive Agreements: The Act allows the US to enter into agreements with foreign governments to establish reciprocal data access frameworks. (US Department of Justice – CLOUD Act Overview)
Concerns Regarding Extraterritorial Reach
The core concern for European authorities is the potential for US law enforcement to bypass European data protection laws, such as the General Data Protection Regulation (GDPR) (GDPR Official Website). The CLOUD Act allows US authorities to directly request data from companies like Microsoft and Amazon, even if that data is physically stored within the EU. This creates a conflict of jurisdiction. European citizens and businesses may have limited legal recourse to challenge US data requests.
Donald Trump and Increased European Anxiety (2025)
The election of Donald Trump in January 2025 heightened these concerns. Reports in early 2025 indicated a willingness by the Trump administration to aggressively utilize the CLOUD Act, particularly in relation to investigations involving the International Criminal Court (ICC). (reuters – Microsoft Blocks ICC Email Access). Specifically, in June 2024, Microsoft confirmed it blocked access to emails belonging to ICC prosecutor Karim Khan following an executive order. This action demonstrated the potential for the US government to directly interfere with international legal proceedings and underscored the CLOUD Act’s power.
The US-EU Data Privacy Framework and Ongoing Negotiations
In response to concerns about data transfers, the US and EU have attempted to establish frameworks for data sharing that balance law enforcement needs with privacy protections. The most recent iteration is the EU-US Data Privacy Framework (European Commission – EU-US Data privacy Framework), which replaced the Privacy Shield agreement invalidated by the Court of Justice of the European Union (CJEU) in the Schrems II case (CJEU – Schrems II Ruling). Though,the Framework remains subject to legal challenges and ongoing scrutiny,particularly regarding the scope of US surveillance powers. Negotiations continue to refine the framework and address European concerns about the CLOUD Act.
* Microsoft: (Microsoft Official Website) A key target of CLOUD Act requests due to its extensive cloud infrastructure.
* Amazon: (Amazon Official Website) Another major cloud provider subject to the CLOUD Act.
* International Criminal Court (ICC): (ICC Official Website) The target of a reported US action under the CLOUD Act in 2024.
* General Data Protection Regulation (GDPR): (GDPR Official Website) The EU’s primary data protection law.
* Court of Justice of the European Union (CJEU): (
