Data sovereignty

Who can be ordered to hand over your authentication data

Most multi-factor authentication is a cloud service run by a US company, and US law can compel a US company to disclose data wherever it stores it. This page explains what that law says, what it does not say, what the common MFA services hold about your users, and exactly what each Notakey deployment exposes, including the parts that do not flatter us.

What the CLOUD Act says

The Clarifying Lawful Overseas Use of Data Act of 2018 added one sentence to US law that matters here: a provider must preserve or disclose records in its “possession, custody, or control, regardless of whether such communication, record, or other information is located within or outside of the United States”. Reach follows control of the data and US jurisdiction over the company, not the location of the server. The US Department of Justice states that an EU subsidiary of a US company is not automatically out of scope.

The EU data protection authorities took a position in 2019: unless an international agreement makes such an order enforceable, a service provider subject to EU law cannot lawfully base a disclosure on it. The EU has no such agreement with the United States. A US provider with EU customers can therefore be ordered to do something that EU law tells it not to do. Asked under oath by a French Senate committee in June 2025 whether it could guarantee that French public-sector data would never be handed to US authorities without French consent, Microsoft France’s legal director answered: “Non, je ne peux pas le garantir.”

What it does not do

The CLOUD Act creates no new kind of warrant and permits no bulk collection. Content still requires a warrant from a judge on probable cause of a specific crime, and the act is explicitly neutral on encryption: it adds no power to compel decryption. Microsoft told the same hearing that no European enterprise or public-sector customer had been affected since it began publishing transparency reports.

So the realistic risk is legal rather than operational. The concern is not that someone routinely reads your authentication logs. The question a regulator, an auditor or a NIS2 risk assessment asks is narrower: who can be compelled, under which law, and can your supplier give you a guarantee. For a US cloud service the honest answer to the last part is no.

Most MFA is a US cloud service

This is not a complaint about the vendors; it is what their own documentation says. Cisco Duo is a cloud service hosted on Amazon Web Services, with EU regions available, and its on-premise Authentication Proxy relays requests to that cloud. Its privacy data sheet lists usernames, phone numbers, device identifiers, end-user IP addresses and authentication logs as data held in the service. Okta is cloud only; its EU cell stores customer data in Germany and Ireland, while its sub-processor list names US-based providers for SMS and e-mail delivery. Microsoft’s EU Data Boundary documentation states that Authenticator push and phone-based sign-ins may be processed outside the boundary, and that IP addresses linked to fraud are published globally.

A European vendor on a US hyperscaler has a similar exposure one layer down, because the hyperscaler controls the infrastructure. That includes us when you choose our cloud, so we say so below.

On-premise Notakey: nothing we could be ordered to produce

The Notakey appliance is a virtual machine you run on your own infrastructure. The authentication server, its connection to your Active Directory, LDAP or RADIUS, the enrolled device certificates and every approval record live there. Notakey has no access to the appliance unless you grant it for a support case, so there is nothing in our possession, custody or control to hand over. An order for that data would have to be directed at you, under whatever law applies to you.

Each user’s private key is generated inside the phone’s secure hardware and never leaves it, so no copy exists anywhere else, including on the appliance. The one external touchpoint in an approval is the push notification. It carries the same readable text as the approval card, for example the service name, the account and the source address, in a template your administrators control, and nothing else: no keys and no way to approve. Apple’s and Google’s push services relay that text. Tapping the notification opens the app, which fetches the request from your appliance over HTTPS, checks that it matches the notification and only then signs the approval.

Notakey cloud: the honest version

Notakey Latvia, SIA is a Latvian company under Latvian law, with no US parent. Our cloud service, notakey.cloud, runs on Oracle Cloud Infrastructure in the Frankfurt region. Oracle is a US company, so you should assume the hosting layer of our cloud is within reach of US legal process, as with any European service on AWS, Azure or Google Cloud. We do not call the cloud offer sovereign, because it is not.

What a cloud instance holds: usernames or identifiers you choose, the public keys and certificates of enrolled devices, push tokens, and the signed approval records. Never the private keys, and passwords only where you create local users in the dashboard instead of connecting your own directory. If the hosting-layer exposure matters to you, the on-premise appliance is the same product with the same mobile app, and it costs less per user.

Three questions to ask any vendor

The word “sovereign” is being attached to a lot of products. The questions that cut through it are the same for us and for everyone else.

  • Under which law does the company that holds the data operate, and does it have a parent company elsewhere?
  • Who operates the servers, and under which law does that company operate?
  • What crosses to Apple and Google when a phone is involved, and does it include the content of the request?

What leaves your network

The three columns describe the Notakey appliance in your data centre, a Notakey cloud instance, and a typical US-operated MFA cloud service such as Duo, Okta or Microsoft Entra, as described on the vendors’ own pages.

Notakey on-premiseNotakey cloudUS cloud MFA (typical)
Authentication server runsOn your infrastructureOracle Cloud Infrastructure, FrankfurtVendor’s cloud, EU region available
Company holding the dataYouNotakey Latvia, SIA (Latvia)US company or its EU subsidiary
Company operating the serversYouOracle (US)The vendor or its hyperscaler (US)
Directory and passwordsStay in your directoryStay in your directory, unless you create local users in the dashboardUsernames synced to the cloud; password handling depends on the product
Approval records and logsOn your applianceOn your cloud instanceIn the vendor’s cloud, including end-user IP addresses
Users’ private keysOn the phone onlyOn the phone onlyDepends on the method; device-bound for passkeys and security keys
Push notificationReadable request text (service, account, source address, as you configure it) via Apple and Google; keys and the approval itself never leave your appliance and the phoneReadable request text, as you configure it, via Apple and Google; keys and the approval stay between the phone and your instanceVia Apple and Google; Microsoft documents that Authenticator sign-ins may be processed outside the EU Data Boundary
A US order would be served onNot Notakey, which has no access; you hold the dataOracle for the hosting layer; Notakey Latvia, SIA for the rest, under Latvian and EU lawThe vendor, wherever the data is stored

Vendor facts from the vendor pages listed below. Not legal advice: whether a specific company is subject to US jurisdiction is a question for counsel.

Questions we get asked

Is an EU hosting region enough?
No. The CLOUD Act reaches data under a provider’s control wherever it is stored, so the region answers a latency and GDPR-transfer question, not a jurisdiction question. The French Senate hearing is the clearest illustration: Microsoft’s technical director confirmed that European customers’ data stays in the EU, and its legal director confirmed in the same session that this is no guarantee against a US order.
Does a Notakey approval travel through US servers?
The push notification does. It carries the readable text of the request, by default the service name, the account and the source address, and that text passes through Apple’s or Google’s push service on its way to the phone. The template is yours to change if any of that is sensitive. What never travels through them: the user’s key, which stays in the phone’s secure hardware, and the approval, which the app signs only after fetching the request from your appliance or cloud instance over HTTPS and checking that it matches the notification.
Is the EU–US Data Privacy Framework still valid?
Yes, as of the date at the bottom of this page. The EU General Court upheld it on 3 September 2025, an appeal is pending before the Court of Justice, and in July 2026 the European Data Protection Board asked the Commission to reassess it after a US Supreme Court ruling on the independence of US agencies. The framework governs GDPR transfers; it does not change what the CLOUD Act can compel.
Does Notakey hold any certification?
No. We publish our data processing agreement, sub-processor list and technical and organisational measures, and we answer security questionnaires, but we do not hold an ISO 27001 or SOC 2 certificate and do not claim one.
Is the EU going to require this?
Not yet. The Commission’s Cloud and AI Development Act proposal of June 2026 defines four sovereignty assurance levels for public-sector procurement, from EU-located infrastructure up to EU-owned providers with no third-country interference, but it is a proposal. National moves are ahead of it: in May 2026 the Dutch government blocked a US acquisition of the cloud provider that hosts its national login service, and the Netherlands and Germany have started awarding public-sector cloud contracts to European providers.

Related pages

Sources

Legal and vendor facts checked on 29 October 2026 against the sources above; they change without notice. The deployment facts about Notakey come from our data processing agreement and privacy policy, and the cloud region from our hosting configuration.

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