Why does placed eps file containing a drop shadow lose transparent background?

When I place an eps file from adobe illustrator cs6, which has a drop shadow, into InDesign the file loses its transparent background and comes in with a solid white background. I'v selected the "Transparent" radial button in Illustrator while saving the file to eps but it doesn't work. Any ideas???

EPS means Encapsulated PostScript (it's really PostScript code wrapped up in a capsule that allows you to place it into other applications as an image), and the PostScript specification doesn't include transparency. That's why even though you have transparency in the Illustrator image, it's format won't translate that transparency data into usable transparency when you place it into InDesign. Lack of transparency support is one of the main reasons people recommend not using eps in a modern workflow.

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