Cloud computing and US-style discovery: new challenges for European companies

Abstract

Cloud computing has enormous business potential but raises many novel legal issues. Users today are concerned first and foremost about data security and data privacy. However, they are often oblivious to the fact that using cloud computing services offered by US providers potentially exposes the users' data to US-style discovery, contrary to their (in Europe rather limited) expectations regarding discoverability. US-style discovery can be highly intrusive and disruptive of a European company's business. As explored in this article, European companies are potentially exposed to the risk of such discovery, regardless of whether the European user has other links to the USA or even contracts itself with a US party. In practice, the only way for European users to guard against such discovery is by influencing the location where the data is stored in the cloud.