We will access, disclose and preserve personal data, including your content (such as the content of your emails, other private communications or files in private folders), when we have a good faith belief that doing so is necessary to.
The good news is you can opt out of that feature, but the bad news is it defaults to on.
And there's MORE!!
Nice, eh? Of course, the system is "free." So for those of you who think "Free is good," go for it. Microsoft will be selling YOU, not its system.