I am kind of surprised how many people on HN try to downplay the PRISM thing. The recent revelations and controversy directly affect the business prospects of any US firm that stores data. A couple of months ago I was on an education business fair in Germany and the first thing I heared at the booth of many data-handling businesses was: "We don't store anything in the United States. All our servers are in Europe/Germ…
1. By law all European telecom providers, including ISPs, are required to provide a backdoor for everything that goes on on their networks (the infamous Data Retention Directive)
and
2. All European security agencies cooperate quite willingly with their American counterparts. Some more so than others (the ones from the former Eastern Block are particularly notorious in this regard) so if an American three letter agency wants your data, it'll get it.