The Washington Post reports a federal court in New York ruled Thursday that Microsoft must comply with a U.S. search warrant to turn over a customer’s e-mails held in a server overseas. In a ruling from the bench upon completion of oral arguments, Judge Loretta Preska upheld a magistrate judge’s opinion in December ordering the Redmond, Wash.-based company to allow federal authorities access to the data. Preska agreed to stay her ruling to allow the company time to appeal. Microsoft contends that the warrant is not justified by law or the Constitution. “The only issue that was certain this morning was that the District Court’s decision would not represent the final step in this process,” Brad Smith, Microsoft’s general counsel, said in a statement. A number of tech firms and privacy advocates have joined the company in arguing that if the government prevails and can reach across borders, it will cause foreign individuals and businesses to flee to their non-U.S. competitors.