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Defending the Cloud: Microsoft’s Geopolitical Break with the White House

Making a rare public stance against the White House, Microsoft has vowed to defy any Trump administration attempt to restrict European access to its cloud services. President Brad Smith said the company would take the US government to court if needed as part of a sweeping effort to reassure EU leaders worried that American technology could be used as political leverage.

Microsoft's new commitments include a promise to operate its European cloud business under EU law and oversight by a European board. It also plans to boost its data center footprint by 40% and spend tens of billions of dollars across 16 countries to cement its long-term presence. Europe, representing over a quarter of Microsoft’s business, has become a critical market amid escalating transatlantic tensions and rising calls for tech sovereignty. Smith said the company has a history of challenging government overreaction, regardless of administration, and is prepared to do so again to preserve customer trust.

In a quiet but pointed move, Microsoft dropped elite law firm Simpson Thacher & Bartlett from a key acquisitions case after the firm agreed to provide legal support to Trump-aligned initiatives. Instead, Microsoft retained Jenner & Block—one of the few large firms taking the risky step of pushing back against White House pressure. The change, confirmed in court filings, sends a potent signal: corporate loyalty is shifting toward firms willing to defend legal independence, even at political cost (The New York Times, 2025).

On April 11, in a court brief supporting Jenner and other firms, a former top Microsoft lawyer joined dozens of current and former general counsels from major U.S. companies in arguing that Trump’s directives compel businesses to select legal counsel not based on merit, expertise, or sound business judgment… But out of fear of presidential retaliation (US Government, 2025). Executive overreach can ripple through private enterprise, altering decision-making dynamics and undermining institutional norms. This concern is voiced not by activists but by some of the most risk-averse actors in the corporate world, which makes it even more urgent.

These actions follow growing unease in Europe after Trump suspended military and intelligence support to Ukraine in March 2025, leaving allies to wonder if tech access could be next. “We as a company need to be a source of digital stability during a period of geopolitical volatility,” Smith declared for the Financial Times. Altogether, these actions have raised concerns among European allies about the reliability of US support in times of geopolitical tension (CNN, 2025).

Microsoft’s pivot to Jenner is a shot across the bow. It’s a signal to D.C., to Brussels, to every general counsel still pretending this is business as usual: It’s not. You either protect the firewall between law and political coercion, or you help burn it down. The legal industry now finds itself on the front line of a constitutional stress test. Right now, the only question left is how many firms (and how many CEOs) will pass it.

 

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