Germany’s government is ending its contract with Verizon over concerns
that the company could be allowing US intelligence to eavesdrop on
communications. An Interior Ministry spokesperson said that Germany
wants to have complete control over sensitive government networks. The
Verizon contract is set to expire in 2015.
Germany is not the only country moving in
We are starting to see the real world impact on technology
companies resulting from the Edward Snowden allegations of mass
surveillance by the US government. Verizon stated “The US Government
cannot compel us to produce our customers’ data stored in data centres
outside the US, and if it attempts to do so, we would challenge that
attempt in a court.” However, Microsoft are currently appealing a court
compelling them to surrender data held on a server in their Dublin
datacentre. The outcome of that appeal will have major implications for
US tech companies and in particular cloud service providers.
AT&T and Verizon are learning the hard way what every
international enterprise should know. Except in war, its duty to the
country in which it does business trumps that to the country in which
it is chartered. The habit of easy cooperation with the US government,
that grew up when they were a state chartered monopoly, is no longer
Note from the JCO : Names of writers removed to honor privacy agreements.