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+ - Spying Scandal: EU may sever Ties with American Internet Providers-> 1

Submitted by dryriver
dryriver (1010635) writes "EU businesses are threatening to terminate relations with American internet providers in response to the National Security Agency surveillance scandal, the European Commission has warned. Neelie Kroes, Vice President of the European Commission, said that US providers of ‘cloud services,’ a technology that permits clients to store data on remote servers, could suffer steep losses if users fear the security of their material is at risk of being compromised. "If businesses or governments think they might be spied on, they will have less reason to trust cloud, and it will be cloud providers who ultimately miss out,” Kroes said. “Why would you pay someone else to hold your commercial or other secrets if you suspect or know they are being shared against your wishes?" The EC vice president then pointed to the “multi-billion euro consequences” facing US internet companies in the wake of the scandal. "It is often American providers that will miss out, because they are often the leaders in cloud services. If European cloud customers cannot trust the United States government, then maybe they won't trust US cloud providers either. If I am right, there are multibillion-euro consequences for American companies. If I were an American cloud provider, I would be quite frustrated with my government right now.""
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Spying Scandal: EU may sever Ties with American Internet Providers

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