SaaS Agreements – Data Protection – Microsoft must disclose data on EU server

Many SaaS customers falsely believe that if their SaaS data is stored in a data centre located in the EU it will be protected against disclosure to the US authorities. This is incorrect. The recent US court ruling against Microsoft has confirmed the position, namely that SaaS suppliers and SaaS customers who use data centres located in the EU, owned by US companies, cannot prevent US authorities from accessing their data.

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SaaS Agreements – Data Protection – The UK Patriot Act

Recently SaaS suppliers have seen a marked increase in EU customers raising concerns about disclosure of their data to US law enforcement authorities under the Patriot Act – an American anti-terrorism law – particularly where the SaaS supplier has a parent company in the USA or data is being hosted or processed in the USA. Now to add to your problems, the UK Government plans to introduce its own “Patriot Act” type law in the near future.

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