German government to drop Verizon over NSA spying fears

(Don Ryan/Associated Press)

Reports of U.S. spying on German citizens -- including German Chancellor Angela Merkel -- caused outrage in the European nationlast year after a wave of revelations from former National Security Agency contractor Edward Snowden. It even led to German parliamentaryhearings on the issue, which started this spring.

And now the German government is ending itscontractwith Verizon over fears the telecom provider could be letting U.S. intelligence agencies snoop on sensitive communications, the Associated Press reports.

"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," German Interior Ministry spokesman Tobias Plate told AP. Verizon has provided Internet service to a number of German government departments but not intelligence to agencies according to Plate.

Germany's current contract with Verizon will expire in 2015, he said.

"Verizon Germany is a German company, and we comply with German law," saidVerizon Germany managing director Detlef Eppig in a statement, which also referred questions to a post on the company's policy blog that it says outlines "the inability of the US Government to access customer data stored outside the US."

While various officials, including Merkel, have expressed concern about U.S. spying, a report from German magazine Der Spiegel last week suggested a close relationship between the NSA and German intelligenceagencies.

Andrea Peterson covers technology policy for The Washington Post, with an emphasis on cybersecurity, consumer privacy, transparency, surveillance and open government.

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German government to drop Verizon over NSA spying fears

Germany drops Verizon internet contract over NSA spying fears

Germany is irked that the NSA spied on its officials (including its Chancellor), and today it responded by hitting the US where it really hurts: the pocketbook. The German Ministry of the Interior has decided against renewing a Verizon internet service contract that expires in 2015, in no small part due to worries that the carrier must sometimes hand over foreign data to the NSA. The country has to reject companies that collaborate with the American intelligence agency if it's going to meet the "particularly high demands" of a critical communication infrastructure, according to the Ministry.

The nation had already been second-guessing the contract, so Edward Snowden's NSA surveillance leaks were really just the straws that broke the camel's back. However, the cancellation still validates US tech firms' worst fears -- they're losing business in countries which no longer feel they can trust American outfits with sensitive info. It's too soon to know whether this trend will continue, but it's clear that even close US allies aren't afraid to cut corporate ties if they believe their data is at risk.

[Image credit: AFP Photo/Jewel Samad]

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Where might Red Hat be looking next, as it seeks to grow its cloud computing presence, capabilities and community? As has been the case for some time, cloud computing and some adjacent technology trends, such as Big Data, DevOps and storage, are likely to drive Red Hat's next M&A move. A prominent target might be Docker, whose open source containerization technology features prominently in RHEL 7.

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