Financial Times reports on the differing privacy approaches taken by the U.S. and EU and their effect on cloud-based services. U.S.-based cloud providers, because of the USA PATRIOT Act, cannot guarantee to EU-based companies that data will not leave Europe--a violation of the EU's data protection directive. A representative from Taylor Wessing said, "This is a big stumbling block...When data need to move outside the EU, then the data protection law framework and its rights and protections have to follow." Obama administration officials have suggested that European concerns about U.S. anti-terror laws are a "red herring" and amount to "digital protectionism" for EU-based cloud providers, and, according to a recent study, the law does not give the U.S. special access to cloud data. (Registration may be required to access this story.)
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