Microsoft Updates Cloud Contracts Following EU Privacy Probe

Microsoft has announced an update to the privacy provisions in the Microsoft Online Services Terms (OST) for its commercial cloud contracts, providing more transparency over data processing to its customers in the Microsoft Cloud.

The company said in a statement late Monday that the new contractual terms will apply to all commercial customers -- public sector and private sector, large enterprises and small and medium businesses -- globally at the beginning of 2020.

"At Microsoft we consider privacy a fundamental right, and we believe stronger privacy protections through greater transparency and accountability should benefit our customers everywhere," said Julie Brill, Corporate Vice President for Global Privacy and Regulatory Affairs and Chief Privacy Officer.

Following EU privacy probe Microsoft said it will increase data protection responsibilities for a subset of processing that Microsoft engages in when it provides enterprise services.

"In the update, we will clarify that Microsoft assumes the role of data controller when we process data for specified administrative and operational purposes incident to providing the cloud services covered by this contractual framework, such as Azure, Office 365, Dynamics and Intune," said the company.

The company said it remains committed to listening closely to customers' needs and concerns regarding privacy.