One example: Exodus Communications (nasdaq: EXDS - news - people), a provider of Internet hosting services.

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As for enforcement of this potential government mandate, the dossier posits that it could lean on internet service providers instead of hosting services, which according to EU law, can't be forced to conduct widespread surveillance.

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The answer: The cloud, the various data access, storage and hosting services available remotely over the Internet.

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It also expanded its footprint in China by acquiring a controlling interest in HiChina Web Solutions, a provider of Internet services such as domain registration and Web hosting.

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The deal gives Nextlink a toehold in Europe, high-speed data lines, web-hosting and e-commerce services and the right to haul traffic for Internet service providers.

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