The Cloud Act and GDPR: Why European Companies Need a European SaaS Provider to Protect Their Data

Did you know that the management software your marketing team uses could be sharing your brand's data with U.S. authorities without your knowledge? This is not a hypothetical scenario. It is the direct result of two U.S. laws that affect thousands of European companies today: the Cloud Act and Section 702 of FISA.

If your company uses SaaS tools from U.S. providers to manage packaging, artwork, or brand assets—even if the servers are physically located in Europe—your data may be at risk. And most importantly, you may be in violation of the GDPR without even realizing it.

What is the Cloud Act, and why does it affect your company?

The Cloud Act (Clarifying Lawful Overseas Use of Data Act), passed in 2018, grants U.S. authorities the power to demand data stored on any server in the world if the company managing it falls under U.S. jurisdiction. This includes European subsidiaries of American companies—and, crucially, it can happen without notifying the government of the country where the data is stored.

Section 702 of FISA adds another layer of risk. It serves as the legal basis for the PRISM program and authorizes the mass surveillance of non-U.S. citizens. In 2024, its renewal extended these powers through 2026, allowing companies such as Microsoft and Google to share European customers' data without a prior court order.

The legal dilemma facing European companies

Companies using American SaaS software face an irreconcilable legal dilemma: if they comply with the Cloud Act and hand over data to U.S. authorities, they are in violation of the GDPR. If they refuse, they risk sanctions in the United States. The GDPR requires that any data transfer to third countries ensure a level of protection equivalent to European standards—something the Cloud Act directly undermines.

Three specific types of risk

Access without a court order: U.S. authorities can access your operational, design, or commercial data without notifying you or seeking authorization from a Spanish or European court. Industrial espionage: The Cloud Act can be used to access strategic information from European companies in commercial competition contexts. The NSA has publicly acknowledged these practices. GDPR fines: A company that discloses data under the Cloud Act can be fined by the data protection authority up to 4% of its global annual revenue.

Why a European SaaS company completely changes the game

Platforms developed and hosted in the European Union are not subject to the Cloud Act or FISA. Data is processed exclusively under European law, thereby eliminating the legal conflict at its source.

MyMediaConnect is a 100% European graphic chain management platform, with infrastructure hosted in certified data centers in Germany and Finland (OVH, with full redundancy). No foreign authority can access your operational data without European judicial authorization; all data processing fully complies with the GDPR; and granular access control allows you to define exactly who can see what, with complete traceability.