Microsoft wins landmark case in the US – data privacy rules prevail

The DoJ had issued a domestic search warrant to Microsoft seeking access to the company’s servers located in Ireland in relation to an ongoing drugs case. The DoJ sought to obtain the email messages of a suspected drug trafficker.

The case focused on the central issue of whether domestic search warrants, issued under American legislation (the Stored Communication Act 1985 (the “Act”)), could be applied extraterritorially.

The court agreed with Microsoft that the Act does not authorise American courts to issue and enforce warrants against US companies for the seizure of customer e-mails stored exclusively on foreign servers.

Microsoft’s appeal was supported by companies including Apple, Amazon and Cisco, and the decision is seen as a major victory for the protection of people’s privacy rights, and helps to ensure that people are protected by their own laws, rather than the reach of foreign governments. The decision also makes it clear that the US Government does not have the authority to issue search warrants unilaterally to reach beyond US borders.

Microsoft welcomed the decision, with its President and Chief Legal Officer Brad Smith reiterating Microsoft’s support for the new International Communications Privacy Act. The proposed legislation would make people subject to the data privacy rules of the country in which they reside or have citizenship.

A spokesperson for the DoJ has said the US Government is considering its options, so an appeal to the Supreme Court could be on the cards.