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Microsoft gets EU hall pass despite admitting it can't protect European data
Regulators declare victory over contractual band-aids while Cloud Act elephant remains in room.
Rather than confronting the incompatibility between European data protection goals and American surveillance laws, regulators chose elaborate compliance theater that satisfies procedural requirements while leaving substantive problems unresolved. The situation represents the "underlying tension since Schrems I" where "no contractual safeguard can neutralize the extraterritorial reach of U.S. surveillance law, a political and legal impasse that EU regulators have no authority to resolve on their own," according to Nevin's analysis. Why: The investigation closure represents regulatory pragmatism choosing procedural compliance over confronting the fundamental incompatibility between European data protection goals and American surveillance laws, enabling political satisfaction while leaving substantive vulnerabilities entirely unresolved.
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