Microsoft warns of cloud data “blockages” as EU-US deal nears

Microsoft has become the latest company to declare concerns about the smooth running of its services as the EU-US data battle continues to unfold, citing concern over disruptions to its cloud platform.

The outlook for some tech companies has been uncertain since the EU ruled against data flows to the US, which would impact many web-based operations.

Months of transatlantic negotiations have resulted in US pledges to keep EU citizens’ data safe once on its soil, marking an important step toward certainty in the years-long battle, but Microsoft is still concerned.

Will Microsoft pull out of the EU?

In its most recent quarterly report, Microsoft explained that cloud-based services rely on international data transfers, and a failure to reach a solution may “result in additional blockages of data transfers.”

While the company hasn’t specifically spoken out about any potential implications for the EU, others have. Meta, as a result of the ongoing debates, has already threatened to pull from the EU, which would affect users of Facebook, Instagram, Whatsapp, and its other subsidiaries.

The World Economic Forum (WEF) also spoke out about the subject earlier this year, proclaiming that cross-border e-commerce has reached an estimated $2.7 trillion value worldwide, having increased 47-fold in the space of a decade.

That article likens the EU-US case to China’s banning of US services like Google, and to the US pressure on Chinese services including TikTok. With data localization increasing in popularity, the WEF suspects that huge logistical and legal nightmares may lie ahead in the event of failure to cooperate.

Elsewhere, Microsoft, Amazon, and Google have come under intense scrutiny for their dominance of the cloud market and anticompetitive natures that make it difficult and costly to switch provider.

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Via Bloomberg