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Cloud storage stymied by Patriot Act

Weak privacy laws make the U.S. an unfriendly place for non-U.S. companies to host data, says one user of cloud storage services. And that could be bad news for some U.S.-based cloud storage vendors. While the customer's data may be stored in the cloud, cloud storage service providers must store the bits on the ground somewhere. Some Canadian and European firms worry that if that data sits on devices maintained on U.S. soil it will be subject to surrepticious peeks by certain U.S. government agencies.

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