Microsoft is updating privacy provisions in its commercial cloud contracts after it was discovered that it had made deals with European Union institutions that failed to protect data in line with EU law.
The company expects to offer the new provisions to public sector and enterprise customers early next year.
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The EU data watchdog, the EDPS, opened an investigation in April to check that Microsoft’s contracts with the European Commission and other EU institutions met data protection rules.
According to Reuters the regulators raised concerns about compliance in October this year.
Microsoft said it will increase its data protection responsibilities for a “subset of processing that Microsoft engages in when we provide enterprise services”.
Last month Microsoft won a $10bn (£7.7bn) tender to develop cloud computing technologies for the Pentagon, while another tech giant, Amazon, was left behind.
In coming years Microsoft will develop the Joint Enterprise Defense Infrastructure Cloud (Jedi) for the military agency.
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