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A three-judge panel of the 2nd US Circuit Court of Appeals had ruled that federal law, notably the Stored Communications Act, allows US authorities to seize content in US-based servers, but not in overseas servers—in this case, Dublin, Ireland.

The dispute is an outgrowth of a years-long battle over whether Microsoft must hand over e-mails to New York prosecutors in a narcotics investigation. But the case has broader implications far beyond the drug probe. The case touches on consumer privacy, international relations, and the government’s desire to investigate criminal activity.