A&L Goodbody LLP July 15, 2016 - Ireland Microsoft wins landmark US appeal against search warrant for emails stored in Ireland by Sarah Grace The US Second Circuit Court of Appeals, overturning an earlier court ruling from a lower court, has held that the US Government cannot compel Microsoft to hand over emails stored on a server in Dublin in a narcotics case. The decision is a milestone victory for privacy rights and will be greatly welcomed by US technology companies storing data abroad. It should also provide reassurance to European citizens that their data will be protected by European data protection laws and the US legal system will respect their privacy rights. The Court, finding in favour of Microsoft, held that Congress did not intend the SCA's warrant provisions to apply extraterritorially, citing a presumption against extraterritorial application of US statutes absent a clear contrary intent. It emphasised that "the SCA?s focus lies primarily on the need to protect users' privacy interests." The significance of the judgment notably turns on the rising concerns amidst the technology sector of a"free for all", giving law enforcement authorities extensive powers to seize data stored outside their jurisdiction. The decision secures privacy protections for companies moving the data they hold to cloud systems outside the US. It remains to be seen whether the US government will appeal the decision to the Second Circuit en banc or the Supreme Court. This case is of particular significance for companies holding data in Ireland as it provides some level of assurance that the US courts will not for now assist US authorities to circumvent the existing Mutual Legal Assistance Treaty (MLAT) process. MLTA provides for bilateral mutual legal assistance between EU and the US authorities in relation to the provision of information necessary for public security and criminal investigation and has inbuilt procedural safeguards. |