There are challenges with that approach though. If a UK corporation does business in the US as well as the UK and uses Google, should it be possible for a US c

There are challenges with that approach though. If a UK corporation does business in the US as well as the UK and uses Google, should it be possible for a US court to compel production of their e-mail. Should the reverse be true, i.e. should a UK court be able to compel google to produce data on from one of their US customers if that customer had done business in the UK?... it's a very sticky area, personally I think it will lead down the path that Microsoft have started on which is that the cloud providers will end up with partially independent companies running in major legal jurisdictions and the data will be held in those countries.