[tremon]

The main problem for them is that it's not in Microsoft's power to be compliant here, as the problems are created by the US CLOUD act, not Microsoft's own policies.

The only way for Microsoft to become compliant is to carve out its European business into a separate organization (not even a subsidiary -- it could be that even a joint venture would not be enough to escape the reach of the CLOUD act).

[fhd2]

If they can do a double Irish with a Dutch sandwich to pay fewer taxes in Europe, I doubt they couldn't find a creative way to deal with this. They only have to be compliant enough for the fines and repercussions to be lower than their profits.