EU gives Microsoft enterprise cloud clean bill of health

Microsoft first and only vendor whose cloud products have passed rigorous privacy tests

Microsoft has become the first and so far only firm whose cloud services have met the European Union's (EU) rigorous privacy standards.

Some 28 EU data-protection authorities found that Microsoft's enterprise cloud contracts meet EU privacy laws after forming an "Article 29 working party" to investigate.

The clean bill of health means that Microsoft enterprise cloud customers can use the vendor's Azure, Office 365, Dynamics CRM and Windows Intune services to move data freely throughout Europe and the rest of the world.

"Europe's privacy regulators have said, in effect, that personal data stored in Microsoft's enterprise cloud is subject to Europe's rigorous privacy standards no matter where that data is located," said Microsoft's general counsel Brad Smith in a blog post. "This is especially significant given that Europe's Data Protection Directive sets such a high bar for privacy protection."

He added that should the EU suspend certain data privacy agreements with the US - which has been called for recently in light of the NSA spying scandal - businesses customers should not be concerned.

"Our enterprise customers won't need to worry that their use of our cloud services on a worldwide basis will be interrupted or curtailed," he said.

From 1 July, Microsoft will ensure the privacy recognition it received from the EU is written into standard enterprise contracts.

Microsoft was initially embroiled in the NSA scandal, after leaked documents claimed top tech vendors allowed US agencies to snoop on non-US citizens' data.

But Smith added that the measures it has taken prove that Microsoft is commited to privacy.

"Other companies talk about their commitment to comply with EU privacy law - but we've enshrined that commitment in our contracts," he said.

"And Microsoft has done the technical and legal work to ensure our customers with European operations can legally move their data through our services. For customers who care about privacy and compliance, there is no more committed partner than Microsoft."