Here's one excerpt from Microsoft’s privacy statement that everyone can understand: READ IT TWICE!!
Finally, we will access, disclose and preserve personal data, including your content (such as the content of your emails, other private communications or files in private folders), when we have a good faith belief that doing so is necessary to:
1.comply with applicable law or respond to valid legal process, including from law enforcement or other government agencies;
2.protect our customers, for example to prevent spam or attempts to defraud users of the services, or to help prevent the loss of life or serious injury of anyone;
3.operate and maintain the security of our services, including to prevent or stop an attack on our computer systems or networks; or
4.protect the rights or property of Microsoft, including enforcing the terms governing the use of the services however, if we receive information indicating that someone is using our services to traffic in stolen intellectual or physical property of Microsoft, we will not inspect a customers private content ourselves, but we may refer the matter to law enforcement.
Thus one of the reasons that when it comes time to upgrade next time around, I'm moving to a Linux Operating System. Notice there is NOTHING about a "warrant" which is needed to access personal property in this statement. Microsoft is too "willing" to "cooperate" with "authorities", ignoring the constitution and bill of rights. "Contemptible" and "Reprehensible" are words I would use to describe Microsoft's stance on this issue.