"Where's the lie?" Seriously? Microsoft accuses them of "reading your email." They are not reading your email: They are parsing it for keywords and phrases, something Microsoft themselves do. If Google is "reading your email" then so is Microsoft. ...And Microsoft stores those keywords that could be revealed "in any number of ways" too. For that matter, they also store your messages on an Exchange server, which is one of the many "number of ways" the entire message might get compromised.

That's a big "if." In this case it isn't true: "Reading" implies a "person reading your email." Google parses email to place ads. But so what? So does Microsoft and every other Email provider on earth. They may be parsing it for a different reason, but they are doing the exact same thing. If parsing is "reading" then you'd have a point. But it isn't, so you don't. Parsing != to Reading. Or, to put it another way: If Google is "reading your email" at Gmail so is Microsoft at Office 365 Online, because all spam protection services parse email and microsoft advertises their Office 365 service as including excellent "Microsoft Forefront" security.