The German
government has cancelled a contract with Verizon over concern that US firms may
be giving data to US authorities.
Verizon has
provided internet services to a number of German government departments and the
current contract was due to run out in 2015.
The firm
did not comment on the move.
There was
anger in Germany over allegations that a US agency bugged Chancellor Angela
Merkel's phone.
Earlier this month Germany announced an investigation into those allegations which were
made by a former contractor of the US National Security Agency (NSA), Edward
Snowden.
There is no
suggestion that Verizon was involved, but the controversy has put pressure on
US technology firms doing business in Germany.
High level
security
German
Interior Ministry spokesman Tobias Plate said: "There are indications that
Verizon is legally required to provide certain things to the NSA, and that's
one of the reasons the cooperation with Verizon won't continue".
"Furthermore,
the ties revealed between foreign intelligence agencies and firms in the wake
of the US National Security Agency affair, show that the German government
needs a very high level of security for its critical networks," he said.
Verizon is
the second biggest US telecoms company after AT&T.
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