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Microsoft gets tired of “Microslop,” bans the word on its Discord, then locks the server after backlash
(www.windowslatest.com)
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What you describe is like how the Mafia leaders claim that they never gave an order to commit a crime. Al Capone was very difficult to pin down.
Since Microsoft could decline the government's "request", then I suspect that technically First Amendment rights were not violated. It's how companies have been getting away for essentially spying for the government.