Re: @d3vy ... WTF?
@Ian
"US citizen data taken offshore to Ireland. This would be similar to either German bank data laws or Swiss Data Laws concerning how to handle data."
Where to start?
First, its not a US citizens data as others have pointed out.
Second, We are not talking about MS, we are talking about an Irish subsidiary of MS, which is registered and operated from Ireland, For all intents and purposes its an Irish company which happens to be owned by Microsoft (for tax reasons).
The law of the country where the servers are located trumps the law of where the users originate.