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Microsoft says it will drop its lawsuit against the US government after the Department of Justice agreed to change the way data like email is obtained for government agencies. Gag orders have typically been used to keep data providers like Microsoft silent, and not inform customers when their cloud data has been searched or inspected by authorities. Microsoft originally filed its lawsuit last year, arguing that the government’s gag-ordered searches of Microsoft accounts violates the constitutional right to free speech.

“This new policy limits the overused practice of requiring providers to stay silent when the government accesses personal data stored in the cloud,” explains Brad Smith, Microsoft’s chief legal officer. “It helps ensure...

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