Without doubt, cloud computing provides a number of opportunities for both individuals and enterprises. However, recent European developments in privacy have raised particularly complex issues. Any kind of outsourcing activities, in particular placing data in the Cloud, represents a legal risk. These risks can be successfully mitigated if stakeholders are aware of these issues and take the appropriate legal means. This presentation will highlight these problems and how to solve them in the light of a EU funded project called OPTIMIS (http://www.optimis-project.eu/) where the Institute for Legal Informatics (IRI) is in charge of all the legal issues involved.