Maximilian Schrems said this would ultimately not qualify to EU's standards for privacy either, and could also be declared invalid by the CJEU.<p>Contractual solutions here:<p><a href="http://www.europe-v-facebook.org/EN/Complaints/PRISM/Response/response.html" rel="nofollow">http://www.europe-v-facebook.org/EN/Complaints/PRISM/Respons...</a><p>I think it would depend a lot on exactly what kind of data Microsoft gets from the German company. If they're using the EU third party as some kind of "shell company" and as a loophole through which they can extract any EU data to their hearts' content, then that would definitely not work and will be declared invalid in the first lawsuit.<p>However, if the German company abides by all the EU and German privacy laws, and therefore gets only the data it can legally get from EU citizens, and then only allow Microsoft to get some of that data, then that could work.<p>Also, the claim that the US gov can't access that data (legally) is only true if Microsoft itself doesn't get that data. If Microsoft gets it to "improve Cortana" or whatever, then obviously the US government can get that data, too, if it requests it.
You can google the title if you don't have access since it's a paywall site (If you're thinking of subscribing to a news site - I'd recommend the FT as I think it's worth the cost of a subscription to get access to their news).<p>Or BI has a writeup too: <a href="http://www.businessinsider.com/ap-microsoft-to-keep-german-customers-cloud-data-in-country-2015-11" rel="nofollow">http://www.businessinsider.com/ap-microsoft-to-keep-german-c...</a>