Microsoft's Ireland Data Center Subject to U.S. Search Warrant, Court Rules - Businessweek

Definitely "a question of control..."

"Last year the U.S. applied for a search warrant for e-mails of an unnamed user of Microsoft’s msn.com related to a drug investigation. The contents of the e-mails were stored on a server in Ireland. Microsoft refused to comply on the basis that the U.S. has no authority to issue a search warrant outside its territory, arguing that the government should instead act through its mutual legal assistance treaty with Ireland. The Electronic Frontier Foundation, which supports Microsoft’s position, has a good rundown of events in the case, including various filings.

A magistrate ruled for the government in April, and Microsoft appealed. Yesterday, U.S. District Judge Loretta Preska upheld the April decision, endorsing the view that it was a question of control, not location, of the information and Microsoft must turn it over."

Microsoft's Ireland Data Center Subject to U.S. Search Warrant, Court Rules - Businessweek