The Financial Times reports that European companies are choosing not to use U.S.-based cloud service providers because of legal obligations the service providers have to the U.S. government under the USA Patriot Act. According to the U.S. legislation, data that is stored, processed or retained by a U.S.-based service provider must be made available for inspection by U.S. authorities without notification to users, which is a violation of the European Data Protection Directive. One European IT chief said, "We would never be able to use a U.S.-based provider of cloud services, even if the data is stored in a data center in the EU," suggesting that European companies would instead use local service providers. (Registration may be required to access this story.)  
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