Microsoft argued: “Congress has not authorised the the issuance of warrants that reach outside US territory, the government cannot seek, and a court cannot issue, a warrant allowing federal agents to break down the doors of Microsoft’s Dublin facility.”l
The judge now says they can.
Microsoft told Judge Preska that Edward Snowden's revelations mean that trust in US companies is low and that if the government won the lawsuit then that trust would be further eroded which would, ultimately, erode US companies’ global competitiveness.
Microsoft was joined in that view by Apple, Cisco and Verizon who said that if the US government wins the case it would result in ‘dramatic conflict with foreign data protection laws.’
A US Assistant Attorney-General said Judge Preska's ruling could provoke retaliation by other countries
An example, said Microsoft, was Chinese government officials this week going too Microsoft's offices in a China and demanding access to material stored on computers in America - an incident which Judge Preska, called "pretty scary."
Judge Preska ruled, however, that the US government's right to see stored material depended on who controlled the data rather than where it was stored.