Microsoft said Wednesday it will retain the option to sue if it is ordered to suspend European cloud operations amid concerns that these services could get caught up in a transatlantic trade war, Politico reported.
During an event in Brussels, Microsoft President Brad Smith addressed growing European concerns that using U.S. cloud services is a risk. Some have suggested that the Trump administration could order U.S. companies to pause operations for EU customers, as retaliation in the trade war or if the EU continues to enforce its tech regulation.
Such an event is “exceedingly unlikely” to happen, Smith said, but the company acknowledges it’s “a real concern of people across Europe.”
The company will add a binding clause to its contracts with European governments and the European Commission stating that it would keep the option open to go to court in the event other governments ordered it to suspend or cease cloud operations, it said in a blog post.
Microsoft reported: Forty-two years ago, Microsoft released the very first version of Microsoft Word. It was a major milestone in the company’s journey to enhance people’s productivity through innovation. It also marked the young and growing company’s first big step in Europe with the first Microsoft product localized in multiple European languages, starting with German and French.
Since then, our economic reliance on Europe has always run deep. We recognize that our business is critically dependent on sustaining the trust of customers, countries, and governments across Europe. We respect European values, comply with European laws, and actively defend Europe’s cybersecurity. Our support for Europe has always been-and always will be-steadfast.
In a time of geopolitical volatility, we are committed to providing digital stability. That is why today Microsoft is announcing five digital commitments to Europe. These start with an expansion of our cloud and AI infrastructure in Europe, aimed at enabling every country to fully use these technologies to strengthen their economic competitiveness. And they include a promise to uphold Europe’s digital resilience regardless of geopolitical and trade volatility.
CNBC reported: Microsoft President Brad Smith says the U.S. tech giant is committed to respecting European laws — even though it may not always agree with them.
“Like every citizen and company, we don’t always agree with every policy of every government. But even when we’ve lost cases in European courts, Microsoft has long respected and complied with European laws,” Smith said in a blog post Wednesday.
Smith’s comments are part of a charm offensive Microsoft is making with Europe this week, after tensions between the United States and European Union ratchet up in recent weeks over U.S. President Donald Trump’s tariffs.
Trump’s trade ware with U.S. trading partners — including the European Union, China and others — has raised fears that the EU could use its regulatory crackdown on America’s technology giants as a tool to counter trade restrictions.