Yes, U.S. authorities can spy on EU cloud data. Here's how
zdnet.com
zdnet.com
This involves ordering UK employees to move personal data out of the UK, and assumes that they're willing to be complicit. Most of the teams I've worked with would rather obey the law than a potentially illegal request from their US colleagues.
A lawyer could argue that the FISA potential creates a situation where the USA is /never/ a safe harbor, but a third tier IS/Abuse/CST goon question a request for a legitimate type of report from above?
What is the legal ground that prevents me, let's say, uk employee of an UK subsidiary of an US company, to tell the press that my UK company has been orderd by it's US owner to hand over private data to the US.
I mean, I cannot be possibly forced to abide by the FISA warrant, right? But can my company be in trouble (and hence fire/sue me? *) for this kind of action of an employee? I mean, how can the US law hold responsible an US company for an non-illegal action performed by a non US employee of a non US branch of that company?
The ancient ECHELON programme tells us that the US (and others) have no problem spying on citizens, using loopholes to spy on their own citizens.
The horrible state of encryption means that most people can't justify encrypted cloud storage because the cost : risk : reward and threat modelling stuff is unfavourable.
It's pretty scary that all this stuff is ending up on random servers across the world.
Because normal people can barely use MS Word, how do you think they're going to be able to use Truecrypt?
To punish the parent, the US government could presumably prosecute the US subsidiary for noncompliance and, if successful, shut down all the company's US parts (including US-based domain names like .com) and seize US bank accounts etc.
And maybe even brand them as a terrorist organization since, clearly, if the US government says it's a matter of terrorism, if you don't help them then you're a terrorist (never mind that doing so would involve breaking the law of the UK jurisdiction where you're based).
They are saving that for ideological enemies, such as people who hold traditional American political values (e.g. freedom of speech, freedom from excessive taxation).
Thinking at the extremes is a really useful thought model because it makes stuff like the above relatively unsurprising. It also modifies one's behavior to protect oneself from the most likely worst case scenario.
Everyone has access to all of your data if it would be problematic for you.