Fox Business: The German government has canceled a contract with U.S. telecoms firm Verizon Communications Inc as part of an overhaul of its internal communications, prompted by revelations last year of U.S. government spying.
Reports based on disclosures by former U.S. intelligence contractor Edward Snowden alleged Washington had conducted mass surveillance in Germany and had even eavesdropped on Chancellor Angela Merkel's mobile phone.
Berlin subsequently demanded talks with Washington on a "no-spy" deal, but these collapsed after the United States appeared unwilling to give the assurances Germany wanted.
Germany also launched an overhaul of its internal communications and secure government networks. This is one of the first actions involving a U.S. firm to result.
"The pressures on networks as well as the risks from highly developed viruses or Trojans are rising," Germany's Interior Ministry said in a statement on Thursday.
"Furthermore, the ties revealed between foreign intelligence agencies and firms in the wake of the U.S. National Security Agency (NSA) affair show that the German government needs a very high level of security for its critical networks."
http://www.foxbusiness.com/industries/2014/06/26/german-govt-cancels-verizon-contract-in-wake-us-spying-row/