Foreign Cloud Privacy Issues Dismissed by U.S. Officials

Amid rising concerns over foreign 'digital protectionism,' leaders at Justice and State Departments look to quell controversy about U.S. jurisdiction over cloud data U.S. companies store overseas.

By Kenneth Corbin
Thu, January 19, 2012

CIO — A pair of senior Obama administration officials on Wednesday sought to tamp down recent stirrings of controversy over the privacy protections under U.S. law surrounding content stored in the cloud residing in data centers in foreign jurisdictions.

Speaking to reporters on a conference call, Deputy Assistant Attorney General Bruce Swartz and Philip Verveer, deputy assistant secretary of state and U.S. coordinator for international communications and information policy, argued that as much as cloud computing has reshaped the way businesses store and provide access to data and services, the fundamental legal protections for overseas operations have remained consistent, and that U.S. policies offer privacy safeguards equally rigorous to those found in Europe.

Swartz, echoing remarks Attorney General Eric Holder recently delivered to members of a European Union civil liberties committee, reiterated the Justice Department's "core belief in the importance of protecting citizens from government intrusion."

"Any notion that the United States doesn't value privacy is mistaken," Swartz said, seeking to debunk a series of "myths" about lax U.S. privacy and data-protection policies.

EU Set to Revise Data Protection Laws

The issue of discrepancies between the laws in the United States and Europe could assume fresh importance as the EU is poised to consider an overhaul of its own laws and regulations concerning data protection, an effort that U.S. privacy advocates hope could precipitate tighter controls in this country.

Microsoft added fuel to that fire last June, when a company executive admitted at the launch event for Office 365 in London that under the Patriot Act, the company could be compelled to turn over information stored overseas to U.S. authorities without providing prior notice or seeking consent from the data owner.

Verveer dismissed the recent controversy as "overblown," and noted that data sovereignty and other cloud computing issues are the subject of frequent discussions between State Department representatives and foreign officials. That interest owes in large part to the dramatic growth in cloud services at a time when many other segments of the economies of the United States and Europe continue to slump. Verveer cited a Gartner projection that the market for cloud services in Western Europe alone is poised to vault to $47 billion by 2015.

"There is a great deal of money at stake with respect to cloud activities," he said.

Swartz emphasized the longstanding cooperation between the United States and EU nations on computer security and privacy issues, including the 2001 Convention on Cybercrime the country signed onto that emerged from multilateral negotiations in Budapest.

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