Microsoft ordered to hand over customer email data stored in overseas data centers

The initial dispute ruled in favor of the government back in April and Microsoft appealed on the ground that it amounted to unreasonable search and seizure, and the government has no authority to issue warrants that deal with overseas operations, in this case, Ireland.
The issue was important enough that a bunch of other tech companies filed briefs to the court on Microsoft’s behalf. AT&T, Verizon, Cisco, Apple, and the Electronic Frontier Foundation, all made legal arguments supporting Microsoft’s position.
Microsoft stated that it will appeal this ruling. Judges across the United States are fairly evenly split on issues like this, so Microsoft’s 0-for-2 record at this point means little. Because there is no consensus or case law that tilts this issue in one direction or another, do not expect privacy issues like this to be settled in the foreseeable future.
source: Industry Leaders