In Philadelphia, Magistrate Judge Thomas Rueter said: "Though the retrieval of the electronic data by Google from its multiple data centers abroad has the potential for an invasion of privacy, the actual infringement of privacy occurs at the time of disclosure in the United States". He ruled that there was "no meaningful interference" with the account holder's "possessory interest" in seeking to access the data.
This is a very slippery slope. It's increasingly obvious that U.S. companies will be at a disadvantage if their customers want privacy. But, maybe that's not something GMail customers care about anyway.