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The issue at the heart of the case is whether communications kept in overseas data centers operated by American companies are beyond the reach of domestic search warrants. Microsoft has argued that federal prosecutors cannot seize the data in Ireland because United States law does not apply there, even though Microsoft controls everything in its data center there. //
The article doesn't tell us the location of the accused nor where the business between the accused and Microsoft took place. Clearly you can't hide from the courts jurisdiction, eg by off-shoring data, if the customer is USA based or the business between them and MS is USA based.
This to me is the critical question, the article doesn't appear to address it?